Taiwan and India inked the Bilateral Investment Agreement and Mutual Recognition of the Respective Authorized Economic Operation Programs Dec. 18 in Taipei City, marking a milestone in efforts to strengthen bilateral ties, according to the Ministry of Foreign Affairs.
Signed by Tien Chung-kwang, representative of Taipei Economic and Cultural Center in India, and India-Taipei Association Director Sridharan Madhusudhanan, the pacts also underscore the effectiveness of the government's New Southbound Policy, the MOFA said.
The BIA supersedes a similar agreement concluded in 2002 and in force since 2005. By factoring in developments over the intervening period in international trade practices and the global information and communication technology sector, the new accord will ensure firms from both sides enjoy comprehensive investment protection, the ministry added.
According to the Ministry of Finance, the AEO arrangement is Taiwan's first with a South Asian nation and third with an NSP target country, after Australia and Singapore.
Through streamlining and improving the security of customs clearance, the agreement is expected to boost bilateral trade and business growth, the MOF said. It follows the signing of a customs assistance accord in 2011 and a temporary customs admission, or ATA Carnet, pact in 2013.
Official statistics reveal that two-way trade surged 27 percent to US$6.4 billion in 2017. India was Taiwan's 16th largest trading partner last year. Major Taiwan exports to the South Asian country are petrochemical products and electronic components and parts, while leading imports from India include agricultural and industrial raw materials.
A key plank of President Tsai Ing-wen's national development strategy, the NSP is enhancing Taiwan's agricultural, business, cultural, education, tourism and trade ties with the 10 Association of Southeast Asian Nations member states, six South Asian countries, Australia and New Zealand
Source: Taiwan Today