A ship is loaded with containers at Sydney's Port Botany container terminal March 4, 2013. Australia's trade deficit shrank by much more than expected in February to its smallest in 14 months thanks to higher prices for resource exports, a likely boost to
A ship is loaded with containers at Sydney's Port Botany container terminal March 4, 2013. Australia's trade deficit shrank by much more than expected in February to its smallest in 14 months thanks to higher prices for resource exports, a likely boost to profits and incomes that also gave the local dollar a lift. Wednesday's figures from the Australian Bureau of Statistics showed exports climbed 3.3 percent overall to a seasonally adjusted A$25.64 billion, the highest total in eight months. Earnings from farm goods, coal, metals and iron ore all increase in the month thanks in part to rising prices. Picture taken March 4, 2013. Reuters/David Gray

Taiwan and Canada will soon sign an agreement to avoid double taxation. This follows a consensus reached in the latest round of trade talks between the two. According to Taiwan’s Vice Economics Minister Cho Shih-chao, the talks were held in Ottawa on May 1 and the two sides were able to work out the details of double taxation avoidance agreement.

Cho led the Taipei delegation at the talks and the Canadian side was led by Susan Gregson, assistant deputy minister in charge of Asian affairs at the Department of Foreign Affairs and Trade. Hailing the consensus at the Ottawa talks, Cho said double taxation avoidance pact will benefit Taiwan businesses as it will eliminate the diffuculties faced by investors in terms of repeated tax cuts for the same income, reported Asia One.

Taxation Disputes

On an average, around 10,000 double taxation disputes involving Taiwanese businesses operating in Canada do come up. The 11th Canada-Taiwan Bilateral Economic Consultation in Ottawa took up this issue in detail and also looked at ways to strengthen bilateral economic cooperation in terms of trade facilitation, strengthening small and medium enterprises, boosting medical equipment trade, and joint development of 5G and fuel cell technologies, reports Want China Times.

Canada is Taiwan's second biggest trade partner in North America. According to Cho, Taiwan’s investments in Canada is almost US$400 million, while Canada has made more than US$500 million worth investments in Taiwan. He said Taiwan and Canada share a highly complementary relationship and the two sides are exploring the prospects of signing more investment agreements.

Keen On TPP

The Ottawa talks touched upon other issues such as increasing bilateral trade and customs co-operation. Taiwan urged Canada to support its case in joining the Trans-Pacific Partnership, which is an upcoming trade agreement among 12 Pacific Rim nations.

According to Cho, Taiwan and Canada discussed the possibility of forming partnerships among SMEs of both countries. During the talks, Canada and Taiwan agreed to promote latest technological developments such as 5G telecom technology and hydrogen fuel cells. To boost collaboration in the medical equipment industry, Taiwan's representative office in Canada and domestic research will hold a BioMed Partnering Forum, for enhancing collaboration in the sector.

Cho noted that the medical equipment industry in Canada is quite strong and would help Taiwan to leverage it for augmenting its manufacturing strengths.

(For feedback/comments, contact the writer at k.kumar@ibtimes.com.au)

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