This pre-shipment and post-shipment credit as well as suppliers'credit may be available at LIBOR rates, minister of state for commerce and industry Omar Abdullah said while addressing an interactive session with the Federation of Indian Export Organisations (FIEO) here on Thursday.

Abdullah also mooted the idea of Indian private parties setting up a multi-product trading company to promote exports to Latin America and this would receive the government's support.

A private company with a small equity base could take up marketing of Indian goods through participation in fairs and exhibitions, Made in India shows in different countries of Latin America, making available sector specific trade potential of each country.

The minister said that the government was examining the feasbility of entering into free trade agreements with Chile, Caricom and Mercosur of the South American region. Measure were being taken to sign MoUs with Brazil, Bolivia, Venezuela, Uruguay and Jamaica, he added.

India was also keen on signing bilateral agreements with countries in the region on recognition on qualification in the field of medical, engineering, law and commerce, he stated.

As part of infrastructural development, the governmenrt would provide assistance in opening warehouses in Latin America. Discussions had also been held for bringing about improvements in transport links and in financial and banking sectors.

To boost two-way trade, Abdullah said that Indian companies should storm the Latin American region through IT, pharmaceuticals and engineering components sector. Major companies in each sector should open offices and the government would support them by meeting 50 per cent of the expenditure for the first two years.

Earlier, Federation of Indian Export Organisations president Navratan Samdria said that the reduction in tariff and non-tariff barriers, privatisation and liberalisation of financial and capital markets in the Latin Ameican countries were positive trends for focus in the region.

Two of the regional blocs - NAFTA which consists of Mexico, USA, Canada and Mercosur comprising Argentina, Brazil, Paraguay anmd Uruguay - were expected to a have a visible impact on the trade and investment pattern of the content, he said.

Samdria noted that the total trade between India and Latin America had grown from $ 473.66 million in 1991-92 to $ 1557 million in 1999-2000. In other words, India's trade with the region had increased considerably within a span of five to sx years in this period, representing a growth of 200 per cent.