India-Mexico to discuss FTA feasibility in May

India and Mexico would discuss the feasibility for a Free Trade Agreement (FTA) in May to boost two-way trade, a senior Mexican official said today.

A high-level joint group on economic and financial matters would have its second meeting in May to discuss the FTA among other matters, the Mexican ambassador to India, Jaime Naulart, said here.

"It is at a very nascent stage and we are looking at the feasibility of such an agreement," he told reporters on the sidelines of an interactive session with members of the Indian Chamber of Commerce.

Addressing the members of the chamber, Naulart said Mexico saw the FTA as one of the tools to solve the country's economic problems.

In 2007, India had signed a 10-year bilateral investment promotion and protection agreement (BIPPA) with Mexico to promote the flow of investment to both countries and allow free repatriation of funds by investors.

Indian exports to Mexico was $127 million in the April-July period in 2009, while import was $84 million in the April-June period the same year.

Naulart said a delegation would arrive in India with technical experts to attract investment in the mining sector in Mexico.

Mexico is rich in gold, silver, copper deposits and is seeking foreign direct investment in iron-ore and coking coal. But it is not opening up the oil and gas sector, Naulart said.

He said Mexico would modernise the labour market and the telecom sector, but gave no details.