www.nidesk.net
Netherlands and India has a long history of trade relations that dates back to the 16th century. Based on the latest reports, the two-trade between the two countries has dramatically increased in the period of 2003-2007 with a growth of 112% especially in the export/import sector.
Textile fabrics and textile good, machines, electronic goods, mineral products and non-precious metal products are among the top exports of India. Meanwhile Netherlands exports local products that falls into the categories of machines, electronic goods and electrical machinery are the biggest imports of India. Both countries are actively collaborating with each other in sectors like finance, food and chemical processing, petroleum and industrial manufacture. The Dutch are in India’s top 10 investor’s list and currently sitting on the fourth position, hoping to retain it or go higher.
Of the later years, there has been significant and regular state visits of leaders by both countries. In 2004, Prime Minister Dr. Manmohan Singh visited Netherlands while D4tch Prime Minister Jan Peter Balkenende came to India where the EU Strategic Partnership was launched. Also during this visit, Prime Minister Balkenende declared that India is a priority country for the Dutch Foreign Policy.
In 2007, the Queen of Netherlands herself, Queen Beatrix and her son Prince Willem and Princess Maxima, paid another visit to India, this time with Minister of Foreign Affairs Maxime Verhagenhigh ranking CEOs from Dutch companies. This visit yielded vital business perspectives for the Indo-Dutch and made way for signing of mutual agreements and holding of key events in Netherlands the following year.
In terms of bilateral agreements, India and the Netherlands still has few policies. In July 1988, the two countries signed an agreement on the Avoidance of Double Taxation which provide tax credit for taxes withheld or paid in India that correspond to Indian income tax. The tax credit is limited to the lower of the tax paid abroad and the Indian tax on the foreign company..
Another trade policy is the Bilateral Investment Protection Agreement in November 1995, which was done to provide predictable investment climate to foreign investment in India as well as to protect Indian investments abroad. This agreement provides a certain assurance that there will be fair treatment with regards to business of contracting parties in each territory as well as smooth financial transactions between them.
Earlier in 1982, the Federation of Indian Chambers of Commerce and Industry and the Dutch Employer’s Association (VNO-NCW) signed an agreement to promote bilateral trade and economic relationships. This was later duplicated in January 2000 between the Confederation of Indian Industry and VNO-CNW.
In 2008 more significant Memorandum of Understandings were signed. In February 2008, The Minister of Shipping, Road Transport and Highways, T.R. Baalu, and The Netherlands Minister of Transport, Public Works and Water Management, Camiel Eurlings signed an MOU that explores the shipping and port sectors. The said agreement is expected to boost close trade and technical cooperation between the two countries in the maritime sector.
Another MOU was inked in 2008, this time with concerns to the Science and Technology field. This aims to develop joint projects in areas of agriculture and medical biotechnology with specific concerns in molecular biology, plant breeding, food processing technology, food nutrition, bioorganic chemistry, microbiology, life-sciences developments, intellectual property rights, bio-safety and others.
Flowers and plants are also included in the shared interests of Netherlands and India. According to a report in www.onderzoekinformatie.nl, knowledge cooperation projects in Horticulture will be started between Netherlands and India with an aim to collaborate on conducting research and development for the Horticulture sector and hopes to eventually come up with an MOU.
In the first month of 2009, trade relations between the Netherlands and India have reached a higher level with the opening of Netherlands-India Desk. The private company which officially launched into business in January is strongly backed-up by the City of Rotterdam. It aims to establish business contacts between enterprises of the two countries especially in terms of market research and public relations.
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