Mexico: Federico Salas Lotfe, Mexico’s Ambassador to India, recently stated in an interview that joint ventures between Indian and Mexican firms on lithium research should be realized over the medium term. The comments came in the context of exploring the potential for a free trade agreement (FTA) between the two nations.
Ambassador Lotfe revealed that India had expressed an interest in exploring the possibility of an FTA before the pandemic. However, negotiations are unlikely to be completed within the next two years, given India’s ongoing talks with the UK, Australia, and other partners.
In the meantime, to bolster economic linkages, Lotfe proposed connecting entrepreneurs from both countries and exploring opportunities in research on the uses of lithium. Mexico encouraged India’s Sun Mobility, which builds energy infrastructure for electric vehicles, to expand into Mexico last year.
Ambassador Lotfe emphasized that even without an FTA, the trade relationship between India and Mexico is healthy and growing. However, if an FTA is eventually signed, things will move much faster.
Regarding the startups sector, Ambassador Lotfe noted that Mexico is interested in India’s digital and startups sector. While a formal platform to connect entrepreneurs from both countries has not been proposed yet, it is not ruled out. So far, Mexico has linked Mexican startups with some of the Indian startups and has been in close touch with Nasscom. Within Mexico, a forum has been created, which includes some of the Indian startup companies already working in Mexico.
Both countries have agreed to look into technology tie-ups on lithium technology. While the question of investments is open-ended, research into the possible uses of lithium is the priority. In the future, investments may be made in areas such as electric batteries for automobiles.
Ambassador Lotfe expects joint ventures between Indian and Mexican companies in the medium term. Mexico is moving very much into this field, with significant investments already made. Tesla is planning to build a major plant in Mexico for electric vehicles, and some electrical battery companies are also going to start building in Mexico.
Regarding energy security, Ambassador Lotfe revealed that a big chunk of Mexico’s $10 billion bilateral trade with India includes oil trade. Some Indian companies already have investments in the oil sector of Mexico as part of multinational consortiums. Future opportunities will depend on the operational situation on the ground and whether Indian companies, together with others, can offer something of interest to Mexico.
In conclusion, the interview with Mexico’s Ambassador to India revealed that the two countries have a growing economic relationship. While negotiations for an FTA are unlikely to be completed within the next two years, the trade relationship is healthy and growing. Mexico is interested in India’s startups and digital sector and hopes to explore further collaboration. Finally, both countries have agreed to look into technology tie-ups on lithium technology, with joint ventures between Indian and Mexican companies expected in the medium term.”
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