Under the agreement, signed by Indian Finance Minister Palaniappan Chidamaram and visiting Mexican Minister for Economy Eduardo Sojo Garza-Aldape here on Monday, the two countries will accord equal treatment to investors, as given to domestic investors.

It would also provide protection to investors which would include safeguarding their intellectual property rights and also grant Most Favoured Nation status to each other.

The agreement is expected to give Indian companies greater market access to the United States, Canada and Mexico as the three countries are members of the North American Free Trade Agreement (NAFTA).

Meanwhile, the two countries also signed a memorandum of understanding on setting up a high level group to facilitate investment and economic cooperation between them besides exploring possibilities of entering into a Preferential Trade Agreement to improve bilateral trade.

The MoU was signed by Indian Commerce and Industry Minister Kamal Nath and the Mexican Minster for Economy.