India trade talks with Chile are “quite ripe” for conclusion, while negotiations with Canada are making good progress, Commerce and Industry Minister Piyush Goyal said on October 27, 2026. He did not announce a completion date for either agreement.

Key Takeaways

  • Goyal said negotiations with the Southern African Customs Union have just started and may take time.
  • India and Mexico plan to launch preferential trade agreement negotiations during a visit by Commerce Secretary Rajesh Agrawal.
  • Talks with the Gulf Cooperation Council and Israel are slow because of the West Asia crisis, Goyal said.

India trade talks span several regions

Goyal said India has begun negotiations with the Southern African Customs Union, whose members are Botswana, Eswatini, Lesotho, Namibia and South Africa. The two sides signed terms of reference in August to formally start talks toward a preferential trade agreement.

The minister also said Mexico is keen on an early harvest trade agreement. Agrawal is in Mexico City for a two-day visit during which the countries plan to sign terms of reference and launch preferential trade agreement negotiations.

India-Mexico bilateral trade fell by more than 9% to $7.83 billion in 2025–26, including $5.72 billion in exports and $2.1 billion in imports. The trade balance favored India.

Existing agreements and slower negotiations

Goyal expressed hope that government continuity in Brazil following its election would help accelerate talks to expand India’s preferential trade agreement with Mercosur. The agreement took effect on June 1, 2009, and provides tariff concessions on 450 product categories from India and 452 from Mercosur.

Negotiations with the Gulf Cooperation Council and Israel are moving slowly because of the West Asia crisis, Goyal said, adding that India is ready to speed them up. India already has trade pacts with the United Arab Emirates and Oman.

India is still assessing the benefits of a proposed agreement with the Eurasian Economic Union because it would cover goods but not services, Goyal said. The first round of negotiations took place in November 2025.

US agreement remains under negotiation

India and the United States announced the finalization of a framework for the first phase of a bilateral trade agreement in February 2026. Changes in the US tariff landscape have since led to further negotiations.

Goyal said India would have a comparative advantage over other countries and receive preferential access under the pact. His comments describe the anticipated terms, not a completed agreement.

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