Uruguay to sign double-taxation treaty with India soon: Uruguay VP

CHENNAI: Uruguay would sign a double-taxation treaty with India very soon, visiting Vice-President of the Latin American country Danilo Astori said here.

"The double-taxation treaty would be signed very soon with India.. All the formalities have been made...," Astori told media here.

According to him, the double taxation treaty would "protect" and "promote" investments made in the respective countries.

"We want to sign it soon.. It will mainly help in protecting and promoting investments," Astori said on the sidelines of a seminar here last night.

However, he said the trade balance with India recorded deficits for Uruguay in recent years. The deficit increased by 49 per cent in 2010. The two countries need to work on it. "We need to improve (our trade relations..)" he said.

Exports to India in 2010 fetched $ 14 mn, an increase of over 40 per cent over the previous year. On the other hand, imports rose by 44 per cent to $ 59 mn.

Uruguay's Industry, Energy and Mining Minister Roberto Kriemerman said all formalities for the double taxation treaty had been completed from his country side. "It is with the Indian government.. We are expecting it to be signed soon...", he said but declined to spell out the timeframe.

He said Uruguay's main exports to India were in the textile and leather sectors. In 2010 the main exports to India were wool and leather. From India, Uruguay imports automobiles and chemicals.