TAIPEI (Taiwan News) – Indian media has reported on April 16 that Taiwanese officials are in the midst of negotiations with the Indian government to establish a bilateral investment protection treaty (BIPT) between the two countries.
Indian news outlet, the Statesman, reported that Taiwanese officials in India had “very intense negotiations” in preliminary discussions with Indian officials on the possibility of a BIPT, which would boost bilateral trade and commercial links.
The report says the officials did not want to be identified, but said that a BIPT would be aimed at increasing investment in the private sectors of both countries, and to promote a “two-way trade subsidy.”
The Statesman article also says that Taiwan is very interested in the possibility of developing a Free Trade Agreement (FTA) and a double taxation avoidance treaty with India as well.
Thanks to the Tsai administration’s New Southbound Policy, and an increased focus on cooperation in information, communication and new technologies, bilateral trade with India this year may reach as much as US$3 billion.
As trade increases, an investment protection treaty will greatly facilitate cooperation and mutual investment in key industries, like those of the Taiwanese government’s “five plus two” industrial innovation program.
Taiwan can benefit greatly from increased Indian investment, and the large pool of tech-savvy talent that is being cultivated in India. Likewise, Taiwan’s experience and expertise in the communications and electronics industries could help to jumpstart domestic businesses in India.