New Delhi: India and Singapore have agreed to complete negotiations on mutual recognition agreements (MRAs) on goods before July 31 this year and finalise a road map for increased economic ties. This was decided during the first review of the India-Singapore Comprehensive Economic Cooperation Agreement (CECA), which concluded in Singapore on Friday.

Both sides committed to resolve outstanding issues and finalise a roadmap for the smooth implementation of the CECA in its second year, an official release said. Commerce and Industry Minister Kamal Nath and his Singaporean counterpart Lim Hng Kiang conducted the review.

On MRAs, the two sides discussed issues relating to the minimum requirement for generic medicinal products from India, clearance for export of egg products, qualified full banking status to the State Bank of India (SBI) and customs cooperation.

The review also focussed on the issue of low investment by Singapore in India. The total foreign direct investment (FDI) from Singapore this year is around 300 million dollars, considerably higher than 62 million dollars in 2004, yet low as per CECA expectations, the release said.

Mr. Kamal Nath urged Singapore to accord high priority to FDI, especially in infrastructure and in the Special Economic Zones as well.

The Singapore envoy said one of the main reasons for the low investment in India was the rigid norms in the Double Taxation Avoidance Agreement (DTAA) with Singapore, as compared to the Mauritius DTAA. While these were meant to address the issue of shell companies, both sides agreed to explore "out-of-the-box" solutions to the problem.

Rise in exports

According to the latest trade data, India's exports to Singapore have risen by over 40 per cent during the four months since signing the CECA, while imports have risen by 11 per cent. The CECA is the country's first comprehensive economic agreement with any country, the release added.

It was agreed that the CECA would be reviewed within 12 months of coming into force and subsequent reviews would be made biennially.

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