Bermuda has concluded negotiations over a tax information exchange agreement (TIEA) with India, Finance Minister Paula Cox announced yesterday.

Talks concerning the bilateral agreement with India that will, upon signing, provide for a full exchange of information on criminal and civil tax matters between the two countries, took place within Indian officials in New Delhi this week.

Bermuda's negotiation team included Wayne Brown, assistant financial secretary, Laura Semos, treaty adviser, and Huw Shepeard, Crown Counsel.

The proposed TIEA between Bermuda and India is expected to be signed within the next few months on completion of the two countries' internal processes.

"Bermuda's Ministry of Finance treaty unit is in New Delhi this week to attend meetings of the Organisation for Economic Co-operation and Development Global Forum Steering Group, in its capacity as vice-chair," said Minister Cox. "We took the opportunity to meet with the host of the Steering Group meeting for the purpose of negotiating a TIEA and to commence discussions of associated agreements for the advancement of Bermuda's economic interests in the region in the days leading up to the Steering Group meeting.

"Both the negotiations process, conducted bilaterally and in-person, and the agreement itself, together reflect a deepening and strengthening of Bermuda's strong relationship with India.

"Presently, Bermuda ranks one of the highest providers in the world of foreign direct inflows (FDI) to India, with Bermuda yielding 0.58 percent to India's total FDI. In fact, there are 120 entities in Bermuda with Indian interests. When this agreement is signed, it will further enhance investment opportunities between our two countries and is a reflection of our targeted success in negotiating TIEAs with members of the G20."

David Ezekiel, chairman of the Association of Bermuda International Companies, said: "With the increasing liberalisation of the Indian insurance sector, Indian insurers and reinsurers could, in the years ahead, become major buyers of protection from the Bermuda market."

Bermuda has 19 signed TIEAs with Japan, France, Germany, the UK, the US, Australia, Ireland, New Zealand, the Netherlands, the Nordic Group (including Denmark, Finland, Iceland, Norway and Sweden and their associated territories the Faroe Islands and Greenland), Netherlands Antilles and Aruba, and Mexico. In addition to India, negotiations have been concluded with, among others, Canada, Spain, Belgium, Portugal, and Korea.