New Delhi, Oct. 30 -- India and Mexico have formally launched negotiations for a preferential trade agreement (PTA), seeking to improve market access for businesses amid higher import duties imposed by Mexico on goods from countries with which it does not have PTAs. The two countries signed the terms of reference on 28 October. Mint explains the proposed agreement, its significance and what happens next.

Mexico preferential trade agreement?

The PTA is an arrangement under which two or more countries offer preferential tariff treatment to select products originating in their respective territories. It generally covers a narrower range of products than a comprehensive free trade agreement, which can involve wider liberalization across goo...