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Taiwan, India Begin FTA Feasibility StudyTaiwan, India Begin FTA Feasibility Study

13/03/2011    178

India's Foreign Secretary Nirupama Rao has disclosed that Taiwan and India are to undertake a non-official feasibility study into a proposed bilateral free trade agreement (FTA), after which it would be decided whether to begin official negotiations.

This was also confirmed by Taiwan’s Ministry of Economic Affairs, from where it was said that the study would be undertaken by private think tanks, Taiwan’s Chung-Hua Institution for Economic Research and by the Indian Council for Research on International Economic Relations.

It is estimated that the feasibility study could take one year, after which further governmental considerations would be necessary before full negotiations on an FTA could start. In the meantime, while the two countries have already completed an investment agreement, discussions are also being progressed in other areas, such as double taxation and customs cooperation.

It has been said that, following the signing in June last year of the Economic Cooperation Framework Agreement (ECFA) with China, Taiwan should try to diversify its external trade alliances as much as possible.

Prior to the disclosure of the possible FTA with India, the only other move by Taiwan, so far, has been the announcement in August last year of negotiations with Singapore on the possible completion of an economic partnership agreement early this year. However, on the other hand, there are also on-going negotiations to deepen the ECFA with China.

March 9th, 2011

Source: tax-news.com

 

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