BIPA signed between India and Mexico
India and Mexico signed the Agreement on Bilateral Protection and Promotion of Investments, here today. While Finance Minister, Shri P. Chidambaram signed the Agreement on behalf of India, Mexican Minister of Economy, Dr. Eduardo Sojo signed on behalf of Mexico.
The Agreement seeks to promote and protect investments from either country in the territory of the other country with the ultimate objective of increasing bilateral investment flow. It requires each country to encourage and create favourable conditions for investors of the other country to make investments in its territory and to admit investments in accordance with its laws. The Agreement would remain in force for a period of ten years and is expected to serve as a catalyst in boosting investment flows between the two countries.
The term investment includes every kind of asset including intellectual property rights in accordance with laws and regulations of the country in which the investment is made. Principles of Most Favoured Nation Treatment and National Treatment (NT) have been asserted in the agreement. It also provides for free repatriation of funds of an investor of either country.
Welcoming the Mexican delegate headed by Dr. Eduardo Sojo Garza-Aldape, Shri Chidambaram referred it as a historic day when the two countries added another golden page in the annals of longstanding bilateral relations between the two countries. He said that starting from the visit of India’s first Prime Minister Shri Jawaharlal Nehru to Mexico in the year 1961, the two countries has had a series of visits of high level dignitaries from both sides. Very soon the new Mexican President Mr. Felipe Calderón is also scheduled to visit India.
Shri Chidambaram mentioned that in the last decade the bilateral trade has grown almost 5 times and has reached the level of almost 2 billion US $. The investments in Mexico by the investors of Indian origin have also crossed US $ 1.5 billion. He also emphasized that given the fact that Mexico is a member of important free trade associations including the NAFTA, this Agreement will certainly be remembered as one of the most important Treaties, which India has signed in recent times. Shri Chidambaram said that today is the third anniversary of the UPA Government and hence it could not have been more appropriate than signing such an important Agreement on this day.
Dr. Sojo mentioned that this is the first major Agreement which the present Government of Mexico has signed. He referred to the rapid growth of bilateral trade and Indian investments in Mexico and assured that the Indian investors would be provided with all possible incentives and comfort in establishing and reinforcing their investments in Mexico.
India and Mexico have signed several important bilateral agreements including, Cultural Exchange Agreement, Agreement for Cooperation in Science and Technology, Agreement on Economic Cooperation, Agreement for Tourism Cooperation, Agreement exempting visa requirement for Official and Diplomatic Passport-holders and MoU on Cooperation in the field of SMEs. India and Mexico also have a number of other bilateral cooperation instruments in the fields of banking, telecommunications, culture and education, trade, industrial cooperation etc. India and Mexico have also maintained close collaboration at the UN bodies and other international fora, including WTO, G-15, G-20 and group of mega bio-diverse countries.
Additional Secretary, Mrs. Sindhushree Khullar proposed vote of thanks to the visiting delegation.
BSC/BY/GN-268/07
(Release ID :28109)