Investment promotion treaty signed between India, Mexico

New Delhi, May 21 (UNI) India and Mexico here today signed an agreement on 'Bilateral Protection and Promotion of Investments' to remain in force for a period of ten years.

Finance Minister P Chidambaram and Mexican Minister of Economy Eduardo Sojo signed the agreement on behalf of their respective countries.

The BIPA 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.

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 delegates, Mr Chidambaram referred to the signing of the treaty as a historic event.

Mr Chidambaram mentioned that in the last decade bilateral trade has grown almost five times and has reached the level of almost two billion dollars.

He said investments in Mexico by the investors of Indian origin have also crossed 1.5 billion dollars. The Finance Minister emphasised that given the fact that Mexico was a member of important free trade associations including the NAFTA, the agreement will be remembered as ''one of the most important treaties,'' which India has signed in recent times.

Dr Sojo said this was 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 Indian investors would be provided all possible incentives and comfort in establishing and reinforcing their investments in Mexico.

UNI