Mexico Free Trade Agreement with India: A Game-Changer in Global Trade
Mexico and India, two of the world`s largest emerging economies, have been in talks for a while to enhance their bilateral relationship. In September 2021, the two countries signed an important agreement that has the potential to reshape the global trade landscape. The Mexico-India Free Trade Agreement (FTA) aims to eliminate tariffs on a wide range of goods and services and is expected to facilitate the flow of investments, boost economic growth, and create jobs in both countries.
The FTA between Mexico and India is significant in many ways. For instance, Mexico is the second-largest economy in Latin America and the 15th largest in the world, while India is the sixth-largest economy and a leading player in several sectors such as IT, pharmaceuticals, and textiles. The combination of Mexico`s strategic location, competitive manufacturing base, and access to global markets, together with India`s innovation and technology capabilities, creates a strong platform for both countries to expand their trade and investment flows.
The FTA covers a wide range of areas, including trade in goods, services, investment, intellectual property rights, and government procurement. Under the agreement, Mexico and India will gradually eliminate tariffs on several products, including auto parts, chemicals, textiles, and leather goods. This move will benefit Mexican and Indian exporters by lowering the cost of doing business and increasing their competitiveness in each other`s markets.
In the services sector, the FTA will enhance cooperation and promote investments through the liberalization of several sectors, such as IT, healthcare, and tourism. The agreement will also provide a framework for the mutual recognition of professional qualifications and facilitate the mobility of professionals between both countries.
The FTA between Mexico and India also includes provisions for the protection of intellectual property rights. This is particularly important for sectors such as pharmaceuticals, where innovation and research are critical for creating new drugs that can save lives. The agreement will provide a transparent and predictable legal framework for the protection and enforcement of patents, trademarks, and copyrights.
Another key aspect of the FTA is the opening up of government procurement markets in both countries. Mexican and Indian companies will now have the opportunity to bid for public contracts in each other`s markets, which will increase competition and reduce costs for government agencies. This move will also encourage the adoption of international best practices in procurement processes, leading to more efficient and transparent practices.
Overall, the Mexico-India Free Trade Agreement is a game-changer in global trade. The agreement will create new opportunities for businesses in both countries, increase market access, and promote economic growth and job creation. As the two countries move forward with implementing the agreement, there is no doubt that the Mexico-India partnership will strengthen and deepen, allowing them to compete more effectively on the global stage.