India to renegotiate investment protection pact with Portugal

NEW DELHI: India today assured Portugal that it will re-negotiate the bilateral investment protection treaty once the model text for the pact is approved by the government.

The issue came up for discussion during the meeting between Commerce and Industry Minister Anand Sharma and Portuguese Foreign Affairs Minister Paulo Portas here, said an official.

India has terminated the Bilateral Investment Protection Agreement (BIPA) with the European country last year, which was being objected to by Portugal.

"Portugal is of the view that India should propose necessary changes it wanted in the existing agreement instead of terminating it as it would be difficult to negotiate a new agreement," an official said.

Sharma, according to a statement, informed the Portuguese Minister that the Finance Ministry is presently engaged in reviewing the model text for such treaties.

The Commerce Ministry statement also said that both India and Portugal are working towards the conclusion of the Agreement on Visa Free Travel for Diplomatic/Official Passport Holders.

"Such an agreement would be useful for both sides for facilitating official level exchanges between the two countries," it said, quoting Sharma.

On the issue of business visas, Sharma proposed that apex business chambers of both the countries should be empowered to endorse business visa application which should be honoured by the authorities for grant of long term visas.

Further, it said that both the sides agreed for the need for an early conclusion of the India-EU Broad based Trade and Investment agreement (BTIA) negotiations.

"Intensive engagements on part of the two sides are a reflection of their desire to finalising a balanced trade agreement at the earliest," it said.

The pact would lead to an increase in the opportunities for market access in both goods and services for both sides.

The India-EU BTIA negotiations are underway with 15 rounds having been completed. The Ministerial level talks are likely to happen next month.