The Hindu Business Line : MRAs with Singapore: Final talks by July 31

India and Singapore have agreed to complete negotiations on Mutual Recognition Agreements (MRAs) on goods, before July 31 this year, during the first review of the Comprehensive Economic Cooperation Agreement (CECA).

The ministerial review meeting, concluded in Singapore on Friday night, was attended by the Commerce Minister, Mr Kamal Nath, and his counterpart, Mr Lim Hng Kiang, an official release said today.

On MRAs in goods, both sides agreed to complete talks before July 31, it added.

The issues on MRAs relate to pending issues such as minimum requirement for generic medicinal products from India, clearances for export of egg products, full banking status to State Bank of India in Singapore and customs co-operation issues.

The review also focused on low level of investments from Singapore to India. Mr Nath urged Singapore to accord high priority to FDI in infrastructure and in special economic zones. The Singapore side pointed out that certain strict provisions of Double Taxation Avoidance Agreement (DTAA) with Singapore (as compared to Mauritius DTAA) were hampering investments.

It specifically referred to the condition on annual expenditure of S$200,000 in each of the previous two years, which restricted investment by both existing and new investors, according to the release. It added that both sides agreed to resolve the issue. Total FDI from Singapore is around $300 million, up from $62 million in 2004.

The CECA was signed in June 2005 and came into effect from August 1. The first review was to be conducted within one year of its coming into effect. Subsequent reviews would now be conducted every two years.

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