India and Mexico have set up a high-level group to explore
the possibility of entering into a preferential trade
agreement (PTA) for improving bilateral trade. The two
countries will also sign a bilateral investment protection
agreement (BIPA) that will enable India Inc to access
North American Free Trade Agreement (NAFTA) - a trading
block that groups Mexico, the US and Canada.
high level group on trade, investment and economic cooperation
that will be set up to ease the flow of trade and investment
between the two countries will also look at the possibility
of a PTA," commerce and industry minister Kamal
Nath said after signing a memorandum of understanding
with Mexican economy minister Eduardo Sojo Garza-Aldape.
Nath said, was reaching out to all the countries and
it has already signed PTA with Mercosur, a grouping
of Latin American countries.
said technical-level team of both countries would be
meeting soon to identify impediments in trade and investment
between two countries. The formal meeting of the group
would be held in the next few months.
Indian investments, the Mexican minister said his country
has free trade agreements with 44 countries and by setting
up a base there, companies can have preferential access
to economies which account for 70 per cent of the world''s
said the potential of Mexico as a gateway to North America
was enormous. He also assured to look into the problems
faced by Indian businessmen in obtaining long-term visas
issue will be sorted out in next two-three months,"
trade between India and Mexico increased from $251 million
in 1999 to $1.5 billion in 2006
Nafta, created in 1994, has become a powerful trade
body with strong trading relations with European, African
and Latin American markets.
exports to Mexico include engineering goods, chemicals
and pharmaceuticals, gems and jewellery, and textiles,
while Mexican exports to India are dominated by crude
gross domestic product (GDP) is estimated at $768 billion
and per capita income is around $8,000.
of Indian origin have pumped in over $1.6 billion over
60 business ventures in Mexico, apart from recent joint
ventures in pharmaceuticals and IT sectors by Indian