Latin America has become one of the top business partners of India in 2004-05 with the two-way trade growing by 77.66 percent to 3.5 billion. India has a three year plain to double its trade in Latin America.
1. Indian has the PTA preferential trade agreement with Mercosur, India is now talking to other countries and regional groupings in the Latin America and Caribbean region for signing similar pacts.
2. India was also negotiating a PTA with Chile.
3. The Andean Community comprises Bolivia, Colombia, Ecuador, Peru and Venezuela and SICA, which is a customs union that includes Guatemala, Honduras, Nicaragua and El Salvador.
4. Asked about a possible Free Trade Agreement with Mercosur (Argentina, Brazil, Paraguay and Uruguay), she said since the PTA had become operational only recently and it was too early to say (anything on FTA).
5. India has bilateral trade with Venezuela and Cuba.
1. China is a major world power and small Latin American countries largely ignored by the United States relish the high level visits by the major power.
2. China leader represent monopolies the can negotiate deal first hand with work good with Latin America government that state own such things as, telecommunications, mining, and energy industries and they don’t have to deal with business diversity.
3. China can trade a lot of Commodities at cheap or fixed prices because of there monopolies.
4. China disadvantage is it floods its market like Mexico and Brazil with Commodities, which causes trade deficits.
5. China is not interested in economic reform of other Latin American countries because the gap between rich and poor in Latin America is immense to the China the export of there Commodities has the highest value.
6. Business are will to over look some the political problem in China such as human rights, and Taiwan to have access to China huge market.
Both India and China are now in the process of Strength ties both in Trade and Socialist or Leftist policies in Latin America.