By Mayank Chhaya, IANS
Chicago : Mexican President Felipe Calderón Hinojosa’s first visit to India next week is expected to significantly deepen bilateral ties even as it serves the purpose of positioning the Latin American country beyond its immediate regional context.
The visit from Sep 9 to 12 will be the first high-level contact between India and Mexico after former prime minister Rajiv Gandhi visited the country in the 1980s. Although India and Mexico have worked closely on many global issues, both trade-related and diplomatic, bilateral visits have not taken place to the extent the two countries would like.
Diplomatic sources told IANS that the visit could help the Mexican president “reinforce and re-emphasise” his country’s “democratic credentials”.
“President Calderón is trying to reach out to the world beyond Latin America. This visit to India is his first to Asia and perhaps there is a reason why he has chosen the largest democracy,” a diplomatic source, who did not want to be quoted, said.
India and Mexico have worked closely in the World Trade Organisation (WTO) and United Nations reform. While those ties are expected to be strengthened during the upcoming visit, the two countries are also expected to explore greater trade ties.
In May, during the visit of Mexican Minister of Economy Eduardo Sojo, the two countries signed a bilateral investment promotion and protection agreement (BIPPA). During this visit, a double taxation avoidance agreement is likely to be signed.
According to India’s Finance Minister P. Chidambaram, investments in Mexico by investors of Indian origin have crossed $1.5 billion.
There is a growing realisation within the Calderón administration about the importance of strengthening ties with India given its rise as an economic powerhouse.
From the Indian perspective, Mexico is an important launching pad for Indian companies for the Latin American market. Considering that it is the only Latin American country to be a member of both the North American Free Trade Agreement (NAFTA) as well as the Organisation for Economic Cooperation and Development (OECD), it is an important relationship for India.
Mexico has been closely watching India’s economic turnaround in recent years. In many ways socio-economic conditions in Mexico are similar to those in India and it believes there is something to be gained from the Indian success.
India’s exports to Mexico in 2005-06 were worth $432.85 million, while imports from Mexico were to the $96.18 million. Experts believe the figures do not do justice to the bilateral potential.