New Delhi, May. 21 (PTI): India and Mexico are all set to sign a bilateral investment protection agreement (BIPA) today that will enable India Inc to access North American Free Trade Agreement (NAFTA)- a trading block comprising of Mexico, the US and Canada.

The agreement, for which the Union Cabinet gave its approval on May 18, is expected to be signed by Finance Minister P Chidambaram and the visiting Mexican Finance Minister M Eduardo Sojo Garza-Aldape, sources said.

Mexico, being part of NAFTA and having a large number of important partners including the EU, offers good opportunity to Indian companies and enhanced market access through investments and joint ventures, said an official source.

NAFTA, created in 1994, has become a powerful trade body with strong trading relations with European, African and Latin American markets.

Over the years, India has maintained good relations with Mexico. Bilateral trade between the two countries has increased to USD 1.5 billion from USD 251 million in 1999.

Among others, Indian exports to Mexico are engineering goods, chemicals and pharmaceuticals, gems and jewellery, and textiles, while Mexican exports to India are dominated by crude and petrochemicals.

Mexico's Gross Domestic Product (GDP) is estimated at USD 768 billion and per capita is around USD 8,000.

Investors of Indian origin have pumped in over USD 1.6 billion over 60 business ventures in Mexico, apart from recent joint ventures in pharmaceuticals and IT sectors by Indian companies.