India to Sign International Trade Deal with Mexico

India is keen to boost its economic relations with Mexico by signing a new international trade deal. According to reports, India is ready to ink a BIPA (bilateral investment protection agreement) with Mexico early this week. It must be noted that the BIPA would be the first of such kind of international trade pact to be signed by India with a signatory of the NAFTA (North American Free Trade Agreement). Other signatories of the NAFTA include the United States and Canada.

The proposed international trade agreement is expected to be inked by Indian Finance Minister P. Chidambaram and his Mexican counterpart Eduardo Sojo Garza-Aldape. It must be noted that the Mexican official is due to visit New Delhi on May 21. Meanwhile, the members of the cabinet are expected to approve the proposed BIPA.

The North American international trade bloc was formed by the NAFTA. The North American Free Trade Agreement was signed by the US, Canada, and Mexico on January 1, 1994. The economic bloc initially set a schedule to remove duties in order to encourage free trade among the members. At present, the North American trade group has evolved into a powerful trade bloc, which has established strong trading ties with Latin American, European, and African countries.

As a member of the North American trade group and a key partner of economic powers such as the EU, Mexico offers many opportunities for India in terms of investments and international trade. Meanwhile, India is keen to deepen its economic relations with the North American nation. It must be noted that India has been able to maintain good ties with Mexico. In fact, government leaders from both sides have met in on several occasions.

The strong ties between India and Mexico are reflected in their growing international trade. In 1999, trade between the two nations recorded a value of $251 million. But current trade between India and Mexico has crossed the $1.5 billion mark. Bilateral trade between the two parties continues to grow with the increase of investments and deals.

India's key exports to Mexico include pharmaceuticals, chemicals, engineering goods, jewelry, gems, and textiles. Meanwhile, Mexico's major exports to India include petrochemicals and crude. According to reports, Indian businessmen have invested a total of $1.6 billion in more than 67 industries in Mexico. Joint ventures have also been inked in the IT and pharmaceutical sectors. The signing of the BIPA is expected to further boost the international trade ties between India and Mexico. India's booming economy continues to attract more foreign investors and partners in international trade.