India, Belgium sign two bilateral pacts

By Our Special Correspondent

NEW DELHI, JAN. 8. India today concluded a bilateral Investment Protection Agreement with Belgium and Luxembourg as well as an Air Services Agreement on the occasion of a Joint Commission meeting with the Belgo-Luxembourg Economic Union.

Addressing the opening session, the Commerce and Industry Minister, Mr. Murasoli Maran, expressed confidence that the implementation of the agenda for action flowing from the India- European Union summit last year would further strengthen cooperation in various fields. India with its cost-effective advantages could meet the growing demand for IT professionals in Belgium and Luxembourg, he said.

Stressing the importance of Indo-EU strategic partnership, the Belgian Secretary of State for Foreign Affairs said the early conclusion of the Double Taxation Avoidance Agreement as well as the Air Services Agreement would facilitate this process.

The Luxembourg Vice Prime Minister, Ms. Lydie Polfer, referring to multilateral trade issues, said the EU believed that a new negotiating round could succeed only by taking on the board concerns of all member countries.

The Investment Protection Agreement which came into force today was for a period of ten years with a broad intent to promote and protect mutual investments. Each country was required to encourage and create favourable conditions for investors and the admission of investments shall be subject to the laws and policies of the country where the investment was made.

The core of the agreement lay in its positive assertion of the principles of the Most Favoured Nation and National Treatment. Further, it provided that nationalisation or expropriation shall not be resorted to except in the public interest in accordance with law, on a non-discriminatory basis, and against compensation.

The Investment Protection Agreement was signed between the Minister of State for Finance, Mr. Balasaheb Vikhe Patil, and the Secretary of State for Foreign Affairs, Belgo-Luxembourg Economic Union, Mrs. Annemie Neyts-Uytterbroeck.

At a separate function, the Air Services Agreement between the two countries was signed by the Civil Aviation Minister, Mr Sharad Yadav, and Ms. Lydie Polfer, Vice Prime Minister of Luxembourg. The agreement was originally initialled on December 21, 1998 and provided that both countries would have the right to designate up to two airlines each for the purpose of operating the agreed air services.

It also stipulated that the frequency of services and the capacity to be operated by the designated airlines would be determined by the two aeronautical authorities from time to time. As for destination points, the agreement only stated that the designated airline of India would be entitled to operate to and fro services from New Delhi to Luxembourg. The intermediate and beyond points on the route schedule are yet to be agreed.

It was also agreed that the designated airlines of each contracting party, after the grant of operating authorisation by the aeronautical authorities of the other contracting party, would be permitted to operate all-cargo services without restriction of frequencies, aircraft type, type of services, tariff and market access excluding cabotage. No capacity entitlement has been fixed in respect of passenger flights.

The designated airlines for India and Luxembourg are Air India and Cargolux Airlines, respectively.

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