India signed Three Pacts with Czech Republic

On 12 June 2010, India signed three pacts with Czech Republic during the three- day visit of Hamid Ansari the Indian Vice President to the nation. The visit was a part of his two-nation tour, which also included Croatia. The three pacts are as following:

1.    A pact on social security.
2.    Economic Cooperation between the two countries.
3.    Protocol on amendment of the agreement between the two nations on Bilateral Investment promotion and protection agreement (BIPA).

Czech Republic also supported India’s candidature for non-permanent membership in UN Security Council and India’s bid for permanent membership in the council.

Agreements

The pact on social security gave exemption to Indian professionals who work for short periods in Czech Republic, specifically for less than five years. For those who are in the country for longer periods, more than five years, the pact ensured that they could take their pension benefits to the next destination. There is also a provision that in case the term of service in either of the two countries falls below the minimum eligible period, then it can be combined so that they cross the threshold and do not lose their benefits. The pact is expected to help both Indian software professionals who come for short periods as well as other Indian professionals who are staying in Czech Republic for a longer period.

Economic cooperation between two countries covers various areas like Industry, technical and technological areas. More specifically both sides decided to develop economic cooperation through business contracts, facilitating flow of investments, exchange of information and cooperating in Science and Technology. The two sides decided to establish a Joint Commission on Economic Cooperation to serve this purpose.

Both nations had signed the original agreement on BIPA on 11 October 1996.Czech Republic had to bring amendment in the agreement according to the overseas trade policies of European Union. Czech Republic became the member of European Union in 2004.

Discussions

Agriculture; The two countries discussed cooperation in agriculture and food processing. Czech Republic is good in genetics and food processing while India has many research and development institutes in agriculture. Therefore, both nations can avail of each other.
Science and Technology; The two sides also decided to extend bilateral cooperation to the area of Science and Technology. The Czech Republic has expertise in different areas of science and technology. Its skills in engineering and manufacturing precision instruments are of world standard. It has a number of research laboratories and quality institutes. Cooperation in Science and tech can be advantageous for both nations. Nanotechnology and nanofibres was also discussed between the two nations.

• Hamid Ansari’s visit to Czech Republic is first after former Indian President Shankar Dayal Sharma visited the country in 1996.
• Czech Republic was part of erstwhile Czechoslovakia which break up into two nations Czech Republic and Slovakia on 01 January 1993.
• Presently, the bilateral trade between the two nations is one billion dollars every year.
• Czech Republic is a land locked country in central Europe.

Recently India has changed its trade policy and world policy at large. It no longer wants to limit its trade with only America and Western European countries. It wants to enlarge its contact, which covers Eastern European countries and African nations besides ASEAN. To serve its global political and economical interests India has to establish and improve its relationship with as many as nations possible.