India has recently made headlines after the Union Cabinet approved an agreement with Spain on Cooperation and Mutual Assistance in Customs Matters. This article delves deep into this bilateral agreement, its provisions, and its significance.
The Foundation of the New Agreement
At the core of the agreement is a legal framework for sharing information between the customs authorities of India and Spain. This shared information will aid in the proper administration of customs laws, seamless detection of customs offences, investigation of the same, and facilitation of legitimate trade.
Key Provisions of the Agreement
The agreement aims towards the accurate assessment of customs duties, incorporating details related to the determination of customs value, tariff classification and origin of the goods. Specific focus is drawn towards customs offences involving unauthorized movement of arms and ammunition, works of art and antiques of significant historical, cultural or archaeological value, toxic materials and substances dangerous to the environment, goods subject to high customs duties or taxes, and methods employed for committing customs offences.
Mutual Benefits of the Agreement
The agreement will serve to provide access to reliable, quick, and cost-effective information and intelligence. This will boost prevention efforts and investigations of customs offences and aid in the capture of customs offenders.
Decoding India-Spain Relations
India and Spain have enjoyed cordial relations since 1956, bolstered by their economic and commercial interactions. The countries established the Joint Commission on Economic Cooperation (JCEC) under the 1972 Trade and Economic Cooperation Agreement to further fuel trade and investment ties.
Reviewing Economic and Commercial Relations
As of 2018, Spain was India’s 7th largest trading partner in the European Union, with bilateral trade standing at USD 6.31 billion. Indian exports to Spain primarily include organic chemicals, textiles and garments, iron and steel products, automotive components, marine products, and leather goods. As an investor, Spain is the 15th largest in India, with the major investment sectors being infrastructure, renewable energy, and single brand retail, among others.
Cultural and Academic Exchange
Cultural exchange serves as a significant facet of India-Spain relations. There have been various initiatives launched by the Indian Council for Cultural Relations (ICCR) and Casa de la India to promote cultural similarities and differences. Events such as the International Day of Yoga and the theatre co-production ‘Flamenco India’ endorse this cultural exchange.
An Insight into the Indian Diaspora in Spain
Although the Indian community forms a small part of the immigrant population in Spain, its presence is notable. According to Spanish statistics, the Indian population in Spain has witnessed growth from 9000 in 2001 to 34,761 as of 2015.
Brief Overview of Bilateral Agreements
India and Spain have signed several agreements, including an Agreement on Trade and Economic Cooperation (1972), an Agreement on Cultural Cooperation (1982), a Civil Aviation Agreement (1986), a Double Taxation Avoidance Agreement (1993), a Bilateral Investment Protection and Promotion Agreement (1997), and an Extradition Treaty (2002), among others.
Way Forward: Building Stronger India-Spain Relations
To strengthen their bond further, both nations need to execute a strategic plan focusing on political, commercial, and cultural aspects. The development of this relationship should be backed by greater cooperation within the framework of the bilateral relations between the EU and India.