An economic partnership with the Pacific Alliance, a grouping of Mexico, Peru, Chile and Colombia, will benefit both parties, outgoing ambassador of Peru to India, Javier Paulinch Verlade, told FE.
“As Pacific Alliance, we are open to explore an engagement with groupings like ASEAN, in order to foster closer cooperation to facilitate trade and investments flows between the respective regions. Peru, having predictable regulations and free capital transfers, would be attractive for Indian investors. Peru has had several rounds of negotiations for concluding a trade pact with India for bilateral trade,” the ambassador said. “Trade with India is growing at 25% each year without FTA (free trade agreement), with the expected trade agreement, it could soar to 60-70 %,” said the envoy. “By the end of 2015, we expect bilateral trade to reach $2 billion.”
India has become an observer in the Pacific Alliance since 2014 and will be participating in the next summit of the alliance to be held in Peru in July.
Envoys and senior diplomats of the grouping highlighted that they were planning to put in place certain procedures, such as facilitating ease of travel for business people into the alliance countries, reductions in tariffs, simplifying regulations, etc. to attract more investment into these countries. “The grouping has agreed to common Pacific Visas on the lines of the Schengen Visa, which can be issued by all the four members to foreigners, valid for travel to all the four countries,” said another diplomat.
According to the ambassador of Mexico, Melba Pria, “Indian companies could see Mexico as a springboard to invest in Latin America and the Caribbean.” India trades heavily with Mexico, which has nine firms in India ranging in industries from entertainment, auto parts manufacturing, processed foods to electric generators manufacturing.