xi-pena.jpg (Photo : www.qz.com)
China and Mexico will enter a trade agreement to further boost cooperation between the countries in the field of economy, according to high-ranking officials from Mexico.
The trade agreement follows after the government of Mexico made its announcement on the cancellation of its rapid-transit railway line contract with China.
Mexican President Enrique Peña Nieto said that his country's unusual geographical location can open opportunities for China to penetrate the markets of both the North America and Latin America.
The Mexican president added that several reforms are being made to make improvements on Mexico's economy with regards to energy, finance, tax and other categories.
He also mentioned that a $600-billion investment plan on infrastructure is included in the reforms.
The trade pact is Mexico's second in Asia after its agreement with Japan. Mexico is currently in several free trade agreements with over 40 countries.
After Chinese President Xi Jinping's visit to Mexico in June 2013, several talks have been made regarding the possibility of a free trade agreement.
To date, Mexico is the second-biggest trading partner of China in Latin America. Conversely, China is the second-biggest trading partner of Mexico.
The economic returns between China and Mexico are not equal though. According to Economy Secretary Ildefonso Guajardo Villarreal of Mexico, the Latin American country only captures 10 percent of China's overseas investments worth $100 billion.
Ildefonso said that they are still trying to figure out how to attract more investors from China.
