India and Mexico have decided to explore the possibility of entering into a Preferential Trade Agreement to improve the bilateral trade, which stood at $1.6 billion at the end of 2006.
"The high level group n Trade Investment and Economic Cooperation that will be set up to ease the flow of trade and investment between the two countries will also look at the possibility of a PTA," Commerce and Industry Minister Kamal Nath said in New Delhi.
Speaking after signing a memorandum of understanding with Mexican Economy Minister Eduardo Sojo Garza-Aldape, he said the potential of Mexico as a gateway to North America was enormous.
India was reaching out to all the countries and it has already signed PTA with Mercosur, a grouping of Latin American countries, Nath said.
Technical-level team of both countries would be meeting soon to identify impediments in trade