Indo-Mexican bilateral trade & investment agreement soon

22 Oct '05

2 min read

The establishment of a Bilateral High Level Group on Trade, Investment and Economic Cooperation is on the anvil. Mexico has proposed an agreement between the two sides on the setting up of the Group and the proposal is currently under finalisation.

This was indicated at a meeting between the visiting Mexican Deputy Minister of Economy, Mr. Alejandro Gomez Strozzi and Shri EVKS Elangovan, Minister of State for Commerce & Industry.

Both sides acknowledged that the current size and composition of the bilateral trade and business basket was far short of the potential. While Indo-Mexican bilateral trade was growing at a satisfactory rate, the actual volume of two-way trade at US $ 431.47 million in 2004-05 has been miniscule.

Of this, India's exports to Mexico were US $ 352.32 million and India's imports from Mexico were US $ 79.15 million. India's share of Mexico's total imports is only 0.44 percent.

Mexico has a unique position for investment and joint ventures since it has Free Trade Agreements with 34 countries including USA and EU. USA is Mexico's largest trading partner accounting for about 70 percent of its imports and about 90 percent of its exports.

The two Ministers noted that in order to strengthen future economic cooperation, the potential sectors of mutual interest could be knowledge-based industry viz., IT, software, drugs & pharmaceuticals, bio-technology, new chemicals, tourism and textiles. “The Mexican government has an ambitious e-Mexico project which aims to develop both vertical and horizontal e-connectivity. Indian companies can definitely make a contribution in this project”, Shri Elangovan said.

Press Information Bureau Government of India

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