INDIA & THE WORLD BILATERAL AFFAIRS JANUARY 2014

INDIA & THE WORLD BILATERAL AFFAIRS JANUARY 2014

• The Union Minister of Steel, Beni Prasad Verma, led a delegation on 26 January, to Australia and New Zealand to strengthen ties in areas of mining and coal supply. Verma met with Minister of Industry and Resources, Government of Australia, Mr. Ian Macfarlane in Brisbane on 28th January, 2014. The Minister of Steel also met with Honble Minister of Natural Resources & Mines, Government of Queensland, Mr. Andrew Cripps and Deputy Premier, Government of Queensland, Mr. Jeff Seeney, in Brisbane on 29th January, 2014. While interacting with Mr. Macfarlane, Verma spoke about the potential for supply of coal to India and the need for reliable raw material suppliers. He also spoke in favour of considering supply of coking coal to Indian steel Industry on priority basis. Minister of Steel further talked about exploring the possibility of a long term agreement for export of coking coal. Interacting with Mr. Andrew Cripps, Verma expressed his belief that India and Government of Queensland, Australia can jointly explore possibilities of investment in development of coal assets. During his meeting with Mr. Jeff Seeney, Verma stressed on the need for exploring possibilities of a long term agreement for export of coking coal between New Zealand and Indian governments.Beni Prasad Verma met with Mr. Simon Bridges, Minister of Energy & Resources, Government of New Zealand in Wellington on 30th January, 2014. During the deliberations he pushed for allocation of mineral assets on a Government to Government basis. The Minister of Steel also met with Australia – India Business council. Visits to both the countries got a great response from ministers, government officials and business community of both Australia and New Zealand government. The interactions were successful in strengthening relations in areas of mutual interest and for promoting future growth and cooperation.
  
• India and Netherlands on 30 January, signed an MoU on cooperation in the field of sports in New Delhi. The MoU was signed by Minister of State for Youth Affairs and Sports (Independent Charge) Jitendra Singh, and Health, Welfare and Sport Minister of Kingdom of the Netherlands Ms. Edith I. Schippers. Ms. Edith I. Schippers is currently on a visit to India heading a Netherlands delegation. The MoU provides for exchange of knowledge and experience in the fields of Sports Management, competition infrastructure set-up, coaching, training systems, training of referees for various sports disciplines and top-sport development through youth academies. The MoU also provides for cooperation and exchange programmes in the field of innovative sports infrastructure development and management including financial development, spatial area development, planning of sports infrastructure and facilities, designing of sports infrastructure and facilities, exploitation of resources, management training and safety & security. Signing of the MoU was preceded by delegation-level talks between the two countries where steps to enhance co-operation between the two countries in the field of sports were discussed.
  
• The Government of India on 30 January, signed a Double Taxation Avoidance Agreement (DTAA) with the Government of Republic of Fiji for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income. The Agreement was signed in New Delhi by P. Chidambaram, Union Minister of Finance on behalf of the Government of India and by Mr. Aiyaz Sayed-Khaiyum, Attorney General and Minister of Justice, Anti-Corruption, Public Enterprises, Communications, Civil Aviation, Tourism, Industry and Trade, on behalf of the Government of Republic of Fiji. Speaking on the occasion, the Finance Minister P. Chidambaram said that the need for the DTAA between the two countries was felt and negotiations were completed in 2011. He said that the Agreement will provide tax stability to the residents of India and Fiji and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Fiji. The DTAA provides that business profits will be taxable in the source State if the activities of an enterprise constitute a permanent establishment in the source state. Profits derived by an enterprise from the operation of aircraft in international traffic shall be taxable in the country of place of effective management of the enterprise. Dividends, interest, royalty income and fees for technical or professional services will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed the prescribed limit for such dividends, interest, royalties and fees for technical services. Capital gains from the sale of shares will be taxable in the country of source. The Agreement also incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of only by the residents of the two countries and to prevent any abuse of treaty.
  
• A Contribution Agreement was signed in New Delhi on 30 January, between the Government of India and Global Alliance for Vaccination and Immunization (GAVI). The agreement was signed by Dr. Arvind Mayaram, Secretary, Department of Economic Affairs (DEA), Ministry of Finance on behalf of the Government of India and Mr Seth Berkley, CEO, GAVI on behalf of the Global Alliance for Vaccination and Immunization (GAVI) to facilitate contribution of Government of India to GAVI. As per the terms of agreement, the Government of India has decided to contribute to GAVI @ US$ one million per year for the four years from 2013-14 to 2016-17 (i.e. during 2013-14, 2014-15, 2015-16 and 2016-17). India supports multi-lateral institutions such as the GFATM and now GAVI in the health sector. The GAVI Alliance (formerly the “Global Alliance for Vaccines and Immunisation”), a public-private global health partnership committed to increasing access to immunisation in poor countries, was launched on January 29,2000. GAVI is doing work in India – including GAVI’s role in the pentavalent national roll-out. GAVI has an HSS grant to India (USD 107m). It is famous as an innovative health PPP namely ‘The Vaccine Bonds Programme (IFFI) and Matching Fund’ that encourages corporate sector to commit resources. India is committed to tackling the Millennium Goals to save children’s lives. In this direction, the Government of India has decided to contribute 1 million USD each year (for 4 yrs) to GAVI Alliance, impressed with the achievements of GAVI – 440 million children immunized globally and 6m lives saved.
  
• India signed a MoU with the Netherlands in the field of health and medicine to strengthen bilateral cooperation, in New Delhi on 30 January. The MoU was signed by the Union Health and Family Welfare Minister, Ghulam Nabi Azad and Ms. Edith I Schippers, Minister of Health, Welfare and Sport, Kingdom of the Netherlands. Speaking at the occasion Mr. Azad said that development and strengthening of cooperation between the two countries will result in mutually beneficial exchanges in the areas of communicable diseases; anti-microbial resistance; public health policy; health systems strengthening including e-health and governance; medical equipment and pharmaceutical products; and life sciences and medical technology. Under the agreement both countries can also encourage greater research collaboration between universities, foundations, industry and the health services in both the countries, he noted.
  
• India and Japan has entered into a Memorandum for strengthening cooperation in the field of tourism. The Memorandum was signed between Ministry of Tourism, Government of India and the Japan Tourism Agency, Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan in New Delhi on 22nd January, 2014. Mr. Parvez Dewan, Secretary, Ministry of Tourism in his capacity as Director General, Tourism and Mr. Shigeto Kubo, Commissioner, Japan Tourism Agency signed the Memorandum. Mr. Parvez Dewan , Secretary, Ministry of Tourism, Government of India said that religious tourism in the form of Buddhist heritage sites is a great attraction for Japanese tourists to India. He said that Japanese tourists have been availing visa-on-arrival in a major way and the highest number of visas on arrival was issued to the tourists from Japan during 2013, as in previous years. Japan is an important source market for Indian Tourism. During 2013, India received 2.20 lakh tourists from Japan. This Memorandum between India and Japan is intended to serve as the key instrument for greater action oriented cooperation and further strengthening the close tourism partnership between the two countries. The main objectives of the Memorandum are : a) To expand bilateral cooperation in the tourism sector; b) To exchange information and data related to tourism ; c) To encourage cooperation between Tour Operators and tourism stakeholders including Hotel owners; d) To establish exchange programmes for cooperation in Human Resource Development; e) To exchange visits of Tour Operators/Media/ Opinion Makers for promotion of two way tourism; f) To exchange experience in the areas of promotion, marketing, destination development and management; and g) To promote safe, honourable and sustainable tourism.
  
• India and South Korea signed nine pacts aimed at imparting forward momentum to their bilateral ties that have seen intensification over the past four years. During a meeting between Prime Minister Manmohan Singh and visiting South Korean President Park Geun-hye in New Delhi on 16 January, India assured that work on the multi-billion-dollar Posco steel plant in Odisha would start in the coming weeks. As Dr. Singh noted, the Agreement on the Protection of Classified Military Information would boost defense engagement and take it beyond the purchase of South Korean defense equipment to an area where Seoul is strong — maintaining the sanctity of its land and maritime borders. Another forward looking aspect wasexploring the possibility of setting up a Korean Industrial Park in India. South Korea is one of the few countries with a trade surplus with China and India’s intention is to not only to provide a new avenue for its industry suffering from sluggish growth in exports that account for half of the country’s GDP, but also get integrated in the global supply chain. The two sides also announced the conclusion of negotiations for revision of the existing Double Taxation Avoidance Convention. The two countries agreed to set up a CEOs Forum comprising captains of the industry and commerce from both countries to provide us with new ideas for deepening our economic collaboration. In order to further security cooperation, it was agreed to hold annual interactions between the national security structures of the two countries as also launch a Cyber Affairs Dialogue. In Science and Technology, both countries will build on the experience of working on many practical projects financed through a $10 million Joint Fund by inking a MoU on Joint Applied Research. They also plan to step up collaboration in the peaceful uses of space science and technology. India decided to extend a ‘tourist visa on arrival facility’ to South Korean nationals.
  
• The Union Minister of Steel, Beni Prasad Verma, taking forward his efforts to foster cooperation in mining and steel sector, interacted with a high-level delegation from Canada headed by Minister of Natural Resources, Government of Canada, Mr. Joe Oliver in New Delhi on 13th January. During the interaction, A Letter of Intent (LoI) was signed to further supplement the dialogue of co-operation in the iron and steel sector. Through the LoI, both countries plan to develop and expand mutual co-operation, inter-alia, through information exchanges in areas of mutual interest including iron-ore, coking coal and other steel making raw materials and encourage bilateral investment opportunities in iron and steel related business. Efforts made by the two countries would ensure raw material security and forge alliances with global entities for tapping new market. On the occasion, Mr.Verma held discussions with the Canadian Minister which aimed at expanding and strengthening bilateral relations between the two countries and also identifying areas of cooperation and assistance where India could be benefitted from Canada, endowed with a huge wealth of natural resources especially coking coal. They exchanged their views on prospects and growth of the iron and steel industry, as well as investment opportunities in raw materials, including pelletization plants and other associated industries in both the countries.
  
• In a crucial bilateral meeting between Indian petroleum Minister Dr M VeerappaMoily and his Mozambique counterpart MsEsperanca Bias, Mozambique Minister for Mineral Resources e during Petrotech 2014 at greater Noida on 15 January, the two Ministers agreed to concluded a Memorandum of Understanding between India and Mozambique for accelerating the cooperation in hydrocarbon sector. Dr. Moily said that a draft of the MoU between the Indian and Mozambique governments have been framed and sent to the Indian High Commission at Mozambique. “We need to expedite the signing of this MoU as soon as possible.” Mozambique Minister invited the Indian ministerial delegation for the formal signing of this MoU, to document this G-2-G cooperation. Dr. Moily said that India will respond to the invitation very soon. Dr. Moliy urged the Mozambique minister to expedite the consortium related issues and also fast-track the development of the discovered assets. The Indian companies hold 30 per cent of the project, the operatorship of which lies with Anadarco. The visiting Minister for Mineral Resources exuded optimism that the deals relating the LNG project will fructify soon. This was one of the 11 bilateral meetings lined up during the Petrotech-2014, organized by ONGC. The Indian minister also said that India has large demand for natural gas including in the power sector where 18,000MW gas based power projects have been commissioned and another 10,000MW gas based power projects are under implementation. Keeping this in mind we need about 8 trains of LNG. Given the expertise of Indian upstream companies like ONGC in petroleum business, Mozambique asked for training their youth. Minister assured that India has the expertise to train oil and gas personnel in entire value chain .The meeting was also attended resented by Petroleum Secretary, ONGC CMD, OVL MD and other corporate honchos.
  
• A Memorandum of Understanding has been signed between Department for Business Innovation and Skills (BIS) and Ministry of Labor & Employment (MoLE) to enhance the collaboration within the framework of UK India Education and Research Initiative (UKIERI) . The signing took place in New Delhi on 16 January, after a bilateral meeting held between the delegations led by between Minister of State (L&E), Government of India K. Suresh, and Minister Mr. Matthew Hancock, Minister of State for Skills & Enterprise, United Kingdom. The key points of the memorandum are as follows:
  
  - Focus of this MOU is to collaborate and build partnership in the area of Skills Development and Employment Services. The MoU will be the guiding document for overall collaboration under which the following activities will be supported:
  1. Institutional capacity building of UK and Indian official and institutes handling skill development and employment services
  2. Sharing of technical expertise, building linkages and identification of gaps in the areas of skill development and employment services, improvement in curriculum, benchmarking of assessment, certification and training methods.
  3. Supporting development of employment services in India on the lines of National Careers Service, UK.
  4. Other beneficial projects, in the area of skill development and employment services, mutually agreed.
  As a first step, UKIERI will facilitate partnership of Indian stakeholders with the existing Career Services in the UK. Best practices from the UK will be shared with MoLE and other stakeholders to help develop the Indian model. A workshop in this regard would be jointly organized by MoL&E and UKIERI in February 2014. This initiative will be jointly funded by MoLE and UKIERI. The India cost will be borne by MoLE and the UK cost will be borne by UKIERI. UKIERI will support in providing UK experts for the Mentor Councils for upto 10 sectors through institutional partnership between the MCs set up by MoLE and the National Skill Academies in the UK. Each partnership will be jointly funded by MoLE and UKIERI. The Indian cost of the partnership will be borne by MoLE and the UK cost of the partnership will be borne by UKIERI.
  
• India and UAE have agreed to promote cooperation in renewable energy, especially in the areas of solar energy and wind power. A Memorandum of Understanding (MoU) to this effect was signed in Abu Dhabi on 18 January. The MoU was signed by Dr. Farooq Abdullah, Minister of New and Renewable Energy of India and Dr Sultan Ahmed Al Jaber, Minister ofState of UAE. Both the countries also agreed to form a Joint Working Group for better coordination through joint research on subjects of mutual interest, exchange and training of scientific and technical personnel, exchange of available scientific and technologies information and data, organization of workshops, seminars and working groups, transfer of know-how, technology and equipment, on non-commercial basis etc. Dr. Farooq Abdullah briefed the UAE Minister on the progress made by India in renewable energy with special reference to the National Solar Mission launched in 2010 under the National Action Plan on Climate Change. He also briefed the Minister on India’s efforts in promoting energy for remote and un-electrified areas. He congratulated the UAE for warm hospitality extended during the 4th Assembly session of IRENA.
  
• Defense Minister of Japan, Itsunori Onodera, is on a visit to India from 5-8 January 2014 as a follow up to the India-Japan Defense Ministerial Meeting held in November 2011. The two Ministers held a Defense Ministerial meeting on 6 January 2014. At the meeting, the two Ministers extensively exchanged ideas regarding regional and global security challenges, as well as bilateral defense cooperation and exchanges between India and Japan. The two Ministers appreciated the progress on India-Japan bilateral defense cooperation and exchanges that had been achieved in a variety of fields and at various levels, including the holding of the third Defense Policy Dialogue which was decided during the 2011 Defense Ministerial meeting, the second "2 plus 2" dialogue and the second bilateral training between the Japan Maritime Self-Defense Force and the Indian Navy which was held from 19-22 December, 2013. At the meeting, the two Ministers shared views to promote defense cooperation and exchanges and to conduct major cooperation and exchanges as follows: 
  • Continue to carry out high-level mutual visits on annual basis. The Defense Minister of India will visit Japan in 2014;
  • Hold the third "2 plus 2" dialogue and the fourth Defense Policy Dialogue (Administrative Vice-Minister/Secretary of Defense level) in Delhi in 2014;
  • Promote exchanges on UN Peacekeeping Operations between Japan Peacekeeping Training and Research Centre, Joint Staff College (JPC), Central Readiness Force of Japan Ground Self Defence Force (JGSDF) and Centre for UN Peacekeeping (CUNPK) of the Indian Army;
  • Conduct bilateral exercises between Japan Maritime Self- Defense Force and Indian Navy on a regular basis. In 2014, the Indian Navy will visit Japan to conduct joint exercises;
  • Conduct Expert exchanges in Humanitarian Assistance/Disaster Relief and Counter Terrorism between both Indian Army and Japan Ground Self Defense Force (JGSDF); and
  • Continue to conduct staff exchanges and discuss possibility of conducting staff talks between Japan Air Self-Defense Force and Indian Air Force and professional exchanges of test-pilots, professional exchanges in the field of flight safety and between their transport squadrons. 
• Addressing a press conference on the 2nd day of Pravasi Bharathiya Diwas -2014, Minister for Overseas Indian Affairs, Mr. Vayalar Ravi said that the Government has introduced a programme named “Know India Programme” for young persons of Overseas Indians with a view to provide them an exposure to the country of their origin so that they can understand it better and more intimately. He also said that under the Programme, 20 young persons of Indian origin in the age group of 18 to 24 from different countries visit India extensively every year, which will provide them an opportunity to have a deeper insight into Indian people and society. Mr. Ravi said more than 900 delegates of Overseas Indians from about 50 countries have participated in this PBD and the highest number of 200 delegates are from Malaysia only.
  
• India and Saudi Arabia on 2nd January signed an agreement on Labour Cooperation for Domestic Service Workers Recruitment. The agreement was signed in New Delhi, by Minister for Overseas Indian Affairs Vayalar Ravi and Minister for Labour of Kingdom of Saudi Arabia Adel Bin Mohammed Fakeih.
  
  Salient Features of the Agreement are:
  i. It aims to protect the right of both the employers and domestic service workers and regulate the contractual relation between them.
  ii. It endeavors to control recruitment costs in both countries.
  iii. It ensures recruitment of domestic sector workers directly or through registered recruitment agencies. iv. It ensures authenticity and implementation of employment contract between the employer and the domestic workers.
  v. It ensures legal measures against recruitment agencies in violation of the laws of either country.
  vi. It ensures that recruitment agencies and the employer shall not charge or deduct from the salary of the domestic worker any cost attendant to his/her recruitment and deployment.
  vii. It ensures that recruitment agencies and the employer do not impose any kind of unauthorized salary deduction.
  viii. It works towards fostering a harmonious relationship between the employer and the domestic workers.
  ix. It facilitates the opening by the employer of a bank account under the name of the domestic sector workers.
  x. It endeavors to establish a mechanism to provide 24 hours assistance to the domestic sector workers.
  xi. It facilitates the issuance of exit visas for the repatriation of domestic sector workers upon contract completion or in any emergency situation or as the need arises.
  xii. A standard employment contract would be finalized that would provide minimum wage, working hours, paid holidays and dispute settlement mechanism.
  
  This is the first step towards a comprehensive agreement on labour cooperation covering the entire spectrum of Indian workers in Saudi Arabia. The agreement was conceptualized during the visit of Vayalar Ravi to the Kingdom of Saudi Arabia in April 2013, where both the ministers had agreed to hold discussions and finalize it at an early date. There are about 28 lakh Indians in Saudi Arabia and they constitute the biggest group of migrant communities. Indians are the most preferred community in the Kingdom of Saudi Arabia due to their hard work and discipline.
  
• India and Maldives signed three Memorandum of Understanding (MoUs) on 2nd January 2014.President Abdulla Yameen Abdul Gayoom made his first visit to India after the election in Maldives and appreciated India’s equidistant approach during the Maldives presidential election.
  
  The following MoUs were signed:
  1. Memorandum of Understanding on Cooperation in the field of Health.
  2. Exchange of Letters on extending the Memorandum of Understanding on Manpower requirements of the Indira Gandhi Memorial Hospital.
  3. Memorandum of Agreement for allotment of plot to the High Commission of Maldives.
  4. To establish the Joint consultative Commission as per the Framework Agreement on Cooperation for Development signed between India and Maldives in 2011.
     
  India reiterated financial support to Maldives for developmental projects like setting up of the Maldives Police Academy, the renovation of Indira Gandhi Memorial Hospital in Male and construction of the Composite Training Centre for the Maldives National Defence Force.
  
  India also extended a standby credit facility of 25 million dollars to the Maldives for imports from India and agreed to meet the requirement of petroleum products in the Maldives. India has agreed to allow visa-free entry for the people from Maldives for medical purposes and removal of the restriction on re-entry within two months. Both the sides also agreed to resolve the GMR’s contract to run Male International Airport. India and the Maldives are looking forward to boost security and maritime cooperation, people-to-people contacts and air connectivity.
  
• The National Archives of India has successfully collaborated with the State Archives of Turkey and the National Records and Archives Authority of Oman. The collaboration was reached after a series of meetings in Ankara and Muscat. V. Srinivas, the Director General of National Archives of India on 2 January 2014 met with Ugur Unal, the Director General State Archives of Turkey in Istanbul.
  
  He met with Hamad Mohd. Al Dhawiani, the Chairman of the National Records and Archives Authority of Oman in Muscat on 31 December 2013.During the visit of the President of India, Pranab Mukherjee to Ankara on 7 October 2013, the protocol for collaboration in Archives was signed between India and Turkey.
  
  National Archives of India, as per the signed protocol allows it to access the ancient Ottoman Archives record that amounts to 12 million documents. The two sides has recognized the benefits from the collaboration in the field of archives and agreed on the need to collaborate deeply in the coming years. The two sides will collaborate in future for development of strong institutions and improved record management practices. India and Turkey agreed on the following road-map for future collaboration:Identifying Archival Material of Mutual Interest, Exhibition of Ottoman Archival Records in National Archives of India, Collaboration in Training Programs, Collaboration in Digitization of Records.