India and Switzerland vowed to conclude the ongoing talks of a bilateral investment treaty (BIT) even as both countries decided to resume the talks on the EFTA-India Trade and Economic Partnership Agreement.

“Prime Minister Modi reiterated that Foreign Direct Investment (FDI) is an important component to realise India’s growth target and that India especially welcomed Swiss investors. In this context, both leaders agreed on the need for continuing negotiations on a new Bilateral Investment Treaty,” stated a joint statement issued after a bilateral meeting between Prime Minister Narendra Modi and Swiss President Doris Leuthard here Thursday. Both countries also decided to the expedite the talks for having a EFTA-India Trade and Economic Partnership Agreement. The EFTA countries include Switzerland, Norway, Iceland and Liechtenstein. Talks had started in October 2008.

Both leaders also planned to enhance cooperation in the fight against tax fraud and tax evasion. They also decided to follow and implement international standards on tax transparency.

In November last year both countries had signed Automatic Exchange of Information (AEOI), which was ratified in June this year. However, the Swiss Federal Council, which is the top governing body of the European nation, is yet to implement it. This is expected to take place in 2018.

It is imperative for Switzerland to adopt the AEOI since the issue of black money continues to be a contentious issue between both countries.

“Prime Minister Modi welcomed the steps taken by the Swiss side to expedite the execution of tax information sharing request by India and hoped that the two sides resolve outstanding issues expeditiously through bilateral dialogue at competent authority level,” the statement said.

Modi also urged Switzerland to implement the recommendations of the ‘Global Forum on Transparency and Exchange of Information in Tax Matters’ to further improve mutual administrative assistance in tax matters.

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