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Rediff.com  » Business » India, Mexico ink trade pact

India, Mexico ink trade pact

By Ajit Jain in Toronto
March 06, 2006 19:20 IST
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India and Mexico have agreed to establish an institutional framework for trade and investment to avoid double taxation and a bilateral investment protection agreement following high level discussions in Mexico City March 3.

While the Indian delegation was led by Shashi Tripathi, Secretary (West), Ministry of External Affairs, the Mexican team was led by Vice Minister in the Ministry of Foreign Affairs, Ambassador Lourdes Aranda.

India's Ambassador to Mexico Rajiv Bhatia and Anwar Haleem, Director, (Latin America and Caribbean), Ministry of External Affairs, were also part of the Indian team.

In a telephone interview from Mexico City, Tripathi told rediff.com that at a meeting of India-Mexico joint commission October in New Delhi last year, "we discussed the whole gamut of issues pertaining to our relationship from political, economic, commercial, trade, cultural, education, S&T."

India-Mexico: A new high   

In Mexico City March 3, "each of these issues were highlighted and we discussed activities that we are going to focus on. The attempt at this particular foreign office consultation (as this high level meeting is called) was how far we have succeeded."

The two side reviewed "the activities that we focused on at the Joint Commission (in New Delhi) and to see which one were moving according to schedule and which one have not moved according to schedule and to see whether we need to impart certain momentum and is there any blockage somewhere and how we can remove that blockage."

"Over the last couple of years, India and Mexico, as old friends, are rediscovering each other. There has been a certain momentum in our relationship. Mexican Minister for Foreign Affairs, Luis Ernesto Derbez , was in New Delhi last year and other visits

have taken place. Now we have started looking at each other with fresh eyes."

According to her, "Mexico is a growing emerging economy. India, of course, has made great strides now. So, we now find there's a considerable synergy between the two countries which can be used to our mutual benefits. What's what we wanted to focus on during this meeting."

India buys $400 million worth of oil from Mexico. The two-way trade is $1.5 billion and rising, and Indian direct investments in Mexico is about $1.5-billion.

Major Indian corporate houses have established their offices in Mexico, including Tata Consultancy Services, Ranbaxy, the Mittals, while the Birla's are in the process of establishing a unit for making tiles in Mexico.

Ranbaxy to set up JV in Mexico   

"Our attempt was to give sense of confidence to traders and investors in two countries and, therefore, we agreed on the institutional framework to avoid double taxation and bilateral investment protection agreement," Tripathi said.

She also proposed that the two sides should form "a high level group of experts who can sit down and focus on areas where we think our trade can move and also to pin point the areas which are road blocks.

"Mexico's reaction was quite positive (to this proposal) and we hope the meeting on these lines will take place next month."

To facilitate easy business travel, the "visa regime has to be more user-friendly" and Tripathi met senior Mexican immigration officials about this. "There's no disagreement between the two countries on this subject," she said.

The next high level meeting will take place in New Delhi on March 8-9, she said.

Ambassador Bhatia said two agreements were signed in Mexico City in addition to the half a dozen agreement concluded at the Joint Commission meeting in New Delhi last year.

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