India and Brazil have signed the Investment Facilitation Treaty
The Dollar Business Bureau
Nirmala Sitharaman and her Brazilian counterpart Marcos Pereira, who is in India to participate in the BRICS summit held bilateral talks on 13th October 2016. The Brazilian minister Marcos expressed pleasure on the Investment Facilitation Treaty being initialed between India and Brazil at Goa and also mentioned that this was Brazil’s first in Asia and was glad that it is happening with India. The Investment Facilitation Treaty between the two countries is to encourage more Indian investment in Brazil and to create a legal framework to the business.
Both the Ministers expressed the need to strengthen the India-MERCOSUR PTA and expand the items on offer from both sides to at least 2500 from the current 450 as this would greatly benefit the two-way trade and need to have close cooperation between India, Brazil and other MERCOSUR partners so as to ensure that the expansion process does not spill over beyond end of next year.
During the discussion, Marcos Pereira informed the media on the reforms being taken by the present Brazilian Government in improving the Business environment, Economic growth and the legislations being embarked upon to bring about labor reforms, social security arrangements besides control of public expenditure.
The Indian Commerce minister mentioned that the present Government has taken great initiatives to improve the ease of doing business in India, as a result, there has been an influx of FDI into the country. She also mentioned that though Brazil’s investment has been modest and below potential, measures have been initiated by both the countries to enhance two-way investment. She mentioned that India felt the absence of Brazil in the VIth India-LAC conclave organized by India during 8-9th October 2015 in New Delhi and suggested the Brazilian Minister to host similar conclaves in Brazil so as to establish long-term economic partnerships and foster south-south cooperation. A Joint Working Group on trade promotion was suggested to be formed to ensure smooth conduct and success of such events which the Brazilian side welcomed.
The Commerce Minister thanked Brazil for its initiative and cooperation for holding constructive deliberations on MSME, Services, Standardisation, IPR and Single Window mechanism during the BRICS summit.