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It is a turning point in the history of trade relations between India and Mexico, as business opportunities grow for both Indian and Mexican businessmen.
The Mexico-India Chamber of Commerce is an initiative to take trade a step forward in this direction. The Chambers is upbeat on the conference in Mexico City that will discuss the great trade potential between India and Mexico.
Mexico's Minister for Foreign Affairs, Dr. Luis Ernesto Derbez will be the chief guest at the conference on October 20.
Luis Wertman Z. President of Mexico's NW-Universe, has been designated as President of the new Mexico-India Chamber. He is also the chairman of Mexico-India Business Committee which is part of the Mexican Business Council for Foreign Trade, Investment and Technology. With a sound knowledge of the potential for trade and investments, Wertman will further expand trade ties between the two countires.
Before joining the Cabinet of the Mexican President Vicente Fox, Derbez, an economist, was with the World Bank heading South Asian operations and in that capacity has traveled to India several times and is passionate about India.
He loves the country and the people, Wertman told rediff.com at a dinner reception organized by Indian Trade Counsellor in Mexico, Y.P. Singh. A number of Indian and Mexican businessmen were invited, including Ranbaxy's director-general in Mexico, Ravi Soni, who will be the vice-president of the Chamber.
"We are following on the examples of the British Chamber, American Chamber, and the German Chamber as we see the potential that India offers today and we see Mexico will be good partner for India and vice versa.
So, we deem it is the right time for us to establish this business chamber that will help businessmen to learn business cultures in two countries."
He conceded more and more Indian businessmen are now traveling to Mexico and they will continue to do so "with or without the Business Chamber but I think if we are able to bring both business cultures closer we will be achieving much more."
The current trade between India and Mexico is close to $1.5 billion with balance of trade in India's favour, Indian Ambassador, Rajiv Bhatia, told rediff.com.
"Last year India exported goods worth about $1 billion to Mexico and we imported goods (largely crude oil) worth about half a billion dollar from Mexico. And India is likely to increase import of crude from Mexico in years to come."
Both Bhatia and Wertman highlighted that Visa issues hamper Indian businessmen from traveling to Mexico. "We have taken up this issue at high levels in the Mexican government. These efforts have resulted in the signing of an agreement that now exempts (Indian) diplomats and officials from visa requirements," Bhatia said.
Mexican government has decided to liberalise business visas and they will look at progressive liberalisation for others as well."
"Besides the active support of Indian Ambassador Bhatia, what's helping us in establishing the Business Chamber is Derbez's love for India," said Wertman.
He explained during the last few years the relationship between the two countries "was very dull. The type of Mexican ambassadors in India and Indian ambassadors in Mexico were more in the political arena. They were not very active in developing relationships. Now both countries are actively engaged in strengthening trade ties for which the credit goes to Bhatia. He is pursuing closer relations in pro-active and dynamic way."
"Similarly, Mexican Ambassador in India, Rogelio Granguillhonme is an excellent promoter of relations between the two countries," said Wertman. "So, you now start seeing the importance of relations between the two countries under leaderships of ambassadors Bhatia and Granguillhome with Minister Derbez as the pillar of strength to boost trade."
According to Wertman, the Mexico-India Business Chamber would take a leaf out of what what Confederation of Indian Industries and the Federal of Indian Chamber of Commerce and Industries are doing to promote trade and investment with many countries.
Several Indian firms like Ranbaxy, Tata Consulting Services, Claris Life Sciences, Solara Farmaceutica, NIIT, Sunpharma have already established in Mexico. Mittal Steel also has a presence here.
All legal formalities for establishing Mexico-India Business Chamber as a non-profit organisation have already been completed, Wertman said. Companies with revenue in excess of $5-million annually will pay $2,500 annual membership fee; those under $5-million will pay $1,500 and individual members will pay $200.
"Initially, every two months we will organise some type of educational event on India's business culture for the benefit of our members for which high-level Indian officials will be invited so that they could also get closer to the Mexican businessmen and Mexican institutions. We will expect Mexican officials to do the same in India. We expect officials in both countries to keep us updated in all aspects of business potentials," he added.
So how will Mexican companies benefit from the chamber? Wertman says, "If you are a Mexican company and you want to import electrical appliances from India, we at the Chamber would provide you with a list of top 10 Indian manufacturers. We will also give information to Mexican manufacturers on various products that are of interest to Indian companies."
Ambassador Bhatia said he was very happy that the Chamber is finally being established as there are lot of things in business arena that could largely be promoted by a private organisation that has support of business people in both countries.