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MEXICAN PRESIDENT CALDERON'S STATE VISIT TO INDIA
Significant Bilateral Agreements on Trade and Taxation Signed

 

-- By  Our Staff Correspondent                      

   
 

The state visit of Mexican President Felipe Calderon Hinojosa to India in September became a milestone in Indo-Mexican relations. Reaffirming the strong commitment to develop and strengthen Indo-Mexican relations in a broad and comprehensive manner, both the countries signed three significant agreements during the visit. The agreements were on avoidance of double taxation and extradition, while committing to work together on international issues like fighting terrorism.

The visit—first ever by a Mexican Head of State after an interval of 22 years—reflected the advances made in bilateral relations between the two nations in recent years. Accompanied by high-level ministerial delegation and a large business delegation, President Hinojosa held wide-ranging discussions with President Prathibha Patil and Prime Minister Manmohan Singh. The Mexican President also met with External Affairs Minister Pranab Mukherjee, UPA Chairperson Sonia Gandhi, and Opposition Leader LK Advani.

As representatives of the two vibrant and pluralistic democracies that are multi-ethnic, multi-lingual, and multi-religious, both countries rediscovered each other’s strengths and complementarities in the spheres of politics, trades, economy, environment, and science and technology.

Based on their significant commonalities, the two sides decided to establish a Privileged Partnership with a strategy to leverage mutual strengths. The two leaders agreed on the importance of regular political dialogue and high-level visits. President Hinojosa invited President Patil and Dr Manmohan Singh to visit Mexico. The leaders also agreed on the importance of fostering greater intergovernmental exchanges, parliamentary contacts and dynamic social interactions.

Joint Commission

Mexico will host the next meeting of the Indo-Mexican Joint Commission in early 2008. The leaders instructed the Joint Commission to prepare a coherent and comprehensive plan of action to strengthen bilateral relations. They also underlined the importance of strengthening their partnership in the 21st century to have a strong underpinning. In order to sharpen the trade and economic relations between the two countries, the leaders stressed the importance of cooperation in investment, infrastructure sector, SMEs, pharmaceuticals, energy, IT, automobile, food processing, agriculture, etc. The two sides also agreed to take appropriate measures to boost bilateral trade that stood at US$1.8 billion in 2006 to US$5 billion by year 2010.

The President invited Indian companies to invest in Mexico, which enjoys duty concessions in the US and other markets under NAFTA and other trade pacts. “Mexico offers free trade access to more than 44 countries which makes it a privileged market with free access to more than one billion people of the world,” the President noted.

Bilateral trade has been increasing rapidly over the last few years, touching US$1.8 billion last year. Indian exports accounted for US$1.1 billion, while imports were about US$0.7 billion. Says Luis Wertman, Chairman, Comce-Indo-Mexico Business Board: “The government plans to increase Indian investment in Mexico to US$10 billion within 5 years. Our sectors of steel, automobile, education, IT, pharmaceutical, tourism and infrastructure are ripe for investment.”

To reinforce greater cooperation in the science and technology sector, the two countries resolved to organise an S&T summit soon to further energise the cooperative endeavours and identify areas of mutual interest for greater R&D programmes. Given the importance attached to agricultural sector in both countries, leaders called for greater cooperation in agricultural research and education. In this context, an appropriate legal framework has to be put in place in the months to come.

Cultural Cooperation

Both Mexico and India are heirs to a rich cultural heritage. The two leaders agreed to finalise the Cultural and Education Programmes for 2008-10. Co-terminus with the visit, an art exhibition of Mixteco Zapoteca ‘Dressed up Like Gods’ was inaugurated at the National Museum, New Delhi. An exhibition of contemporary Mexican artist Juan Soriano was also held at National Gallery of Modern Art, Mumbai during the Presidential visit.

Bicentenary Celebrations

In August 2010, both countries will celebrate the 60th anniversary of diplomatic relations. Both the sides have agreed to make that event a momentous one befitting the occasion with so many commemorative activities. The year 2010 will also mark the 200th anniversary (bicentenary) of Mexican independence and 100th anniversary of ‘Mexican Revolution’. President Calderon extended his cordial invitation to President Prathibha Patil and Prime Minister Dr Manmohan Singh to attend these national events. The two leaders also discussed the ways and means to enhance the cooperation between education sectors of the two countries by strengthening linkages among universities and leading technology institutes.

The Indo-Mexican Forum held its first meeting in New Delhi in August 2007 and it will be periodically organised. Both the countries also agreed on continuing support to the process of reform in the United Nations Security Council, where India will get a membership in 2011-12 and Mexico in 2009-10.

In respect of the Doha Development Agenda, both sides stressed the importance of closer coordination to realize the dimension of development in every aspect of negotiations. They reiterated the urgent need to successfully complete the Doha Round in order to promote the interests of developing countries and work together in the G-20 club.

The leaders further agreed that international civilian nuclear cooperation under appropriate IAEA safeguards—among countries committed to disarmament and non-proliferation objectives—need to be enhanced through acceptable forward-looking approaches, consistent with their respective national and international obligations.

Both the sides recalled with satisfaction their tradition of positive cooperation at the IAEA and other fora, with a view to ensure the unimpeded growth and development of peaceful uses of atomic energy through the supply of appropriate technology, equipment, and material with adequate safeguards and to the satisfaction of the International Atomic Energy Agency. The two leaders also had detailed exchange of views on regional issues of mutual interest, including the political and economic developments in Latin America and Asia Pacific region.

Significant Agreements

After signing the agreements on extradition, mutual legal assistance in criminal matters, and avoidance of double taxation, President Calderon expressed his gratitude to the government and people of India for the hospitality and warm welcome. The President also travelled to Mumbai and Bangalore and interacted with leading industrialists and technocrats in both cities.

On the sidelines of the visit of the President, the Confederation of Indian Industry (CII) and the Mexican Business Council for Foreign Trade, Investment & Technology (COMCE) signed an MoU to increase their efforts in mutual trade, technical and industrial cooperation between Mexican and Indian Industry. The MoU also seeks to strengthen the already growing business relations between the two emerging economies of India and Mexico. The MoU also aims to promote cultural growth between India and Mexico and provide information and support to businesses on both sides in investment and trade opportunities.

 

           

 

 

 
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