India-Mexico Trade Agreement: A New Chapter in Bilateral Relations

India and Mexico have long-standing cultural and historical ties as two of the world`s oldest civilizations. However, their economic relations have not been as robust, with bilateral trade between the two countries remaining modest. But this could soon change with the signing of a new trade agreement that promises to deepen economic ties and boost trade between India and Mexico.

On February 10, 2021, India and Mexico signed a Memorandum of Understanding (MoU) to strengthen their bilateral trade relations. The MoU seeks to establish a joint working group that will identify potential areas of mutual economic cooperation and explore trade and investment opportunities. The two sides will also share best practices in areas such as e-commerce, investment promotion, and intellectual property rights.

The India-Mexico trade agreement is expected to provide a major boost to bilateral trade and investment, which has been growing at a promising rate in recent years. According to the Indian Ministry of Commerce, bilateral trade between India and Mexico reached USD 9.01 billion in 2019-20, with India`s exports to Mexico valued at USD 4.56 billion and imports from Mexico at USD 4.45 billion.

While this is a significant increase from the USD 5.38 billion in bilateral trade recorded in 2015-16, there is still room for further growth. The India-Mexico trade agreement is expected to create new opportunities for Indian and Mexican businesses to explore each other`s markets, deepen trade ties, and expand their presence in the region.

One of the key areas of focus under the agreement is the promotion of trade in goods and services. India has identified pharmaceuticals, textiles, engineering goods, and IT services as potential areas for export to Mexico, while Mexico is keen to increase its exports of automotive and aerospace parts, chemicals, and petroleum products to India.

Another area of focus is investment, with both countries seeking to promote greater investment flows in areas such as infrastructure, energy, and tourism. As part of the agreement, India and Mexico will establish a joint business council to encourage greater collaboration between their respective business communities.

The India-Mexico trade agreement is also expected to provide a much-needed boost to the multilateral trading system, which has been under pressure in recent years due to rising protectionism and trade tensions. Both India and Mexico are strong advocates of free trade and have been pushing for greater cooperation among developing countries to promote a more inclusive and equitable global trading system.

In conclusion, the India-Mexico trade agreement is a significant milestone in bilateral relations and signals a new phase of cooperation between two of the world`s largest developing economies. By deepening economic ties, boosting trade and investment, and promoting free trade, India and Mexico are creating new opportunities for their businesses and contributing to a more inclusive and equitable global trading system.