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India, UAE amend DTAA, sign other pacts
March, 27th 2007

Keen to boost their trade and economic ties, India and the UAE today revised their agreement on Double Taxation Avoidance and signed a pact for exchange of information between the stock exchange regulators.

These accords, along with three others, were inked after talks between Prime Minister Manmohan Singh and UAE's Vice President Sheikh Mohammed Bin Rashid Al Makhtoum here during which the two sides discussed ways to enhance their trade and investment.

To update their agreement on Double Taxation Avoidance and Prevention of Fiscal Evasion with respect of Taxes on Income of April 29, 1992, the two sides signed a protocol to amend that accord.

An MoU was signed between Emirates Security and Commodities Authority and SEBI for assistance and mutual cooperation on exchange of information.

The two sides also signed a Framework Agreement on development of industrial relations, which is aimed at boosting collaborations in diverse fields.

An MoU between Bureau of Indian Standards (BIS) and Emirates Authority for Standardisation and Metrology was also signed.

An MoU for Technical Cooperation in Accreditation Activities between Accreditation Board for Testing and Calibration Laboratories and Emirates Authority for standardisation and metrology was also signed. During his talks with Makhtoum, the Prime Minister is understood to have emphasised that both countries could benefit further if they work to enhance their trade and two-way investment.

Among the areas identified for enhancing cooperation on priority basis are pharmaceuticals, energy and IT sectors.

Both countries are keen to have collaborations and joint venture projects.

Makhtoum, who is also Prime Minister of UAE and Dubai ruler, was here on a two-day visit since yesterday.

Besides Singh, he met President A P J Abdul Kalam and External Affairs Minister Pranab Mukherjee among others during his visit, which is seen with much significance here as UAE hosts about 1.4 million Indians.

UAE is an important constituent of Gulf Cooperation Council (GCC), with which India proposes to have Free Trade Agreement (FTA) soon.

In the proposed FTA, India is likely to seek greater safeguards for its chemicals and petrochemical industry. This is being done with a view to protect domestic players who would find it difficult to handle competition as the cost of crude oil is extremely low in GCC.

Earlier in the day, Makhtoum told Indian business leaders that there were lot of opportunities for the two countries to cooperate.

He proposed joint ventures between Indian and UAE companies to take on global competition.

 
 
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