Minister Dugasse at ACP finance ministers meeting |25 April 2006

Minister Dugasse is accompanied by Ambassador Callixte d’Offay and Ronald Cafrine, director general of Policy and Strategy in the Department of Finance.

At the meeting, the ACP ministers will discuss issues pertaining to budget support as an aid modality, EU development policy and strategy for the ACP countries, HIPC (Heavily Indebted Poor Countries) Initiative and other debt relief measures, and prospects for debt reduction in ACP countries.

Another important issue on the agenda is the development implications of the Economic Partnership Agreement (EPA) between the ACP countries and the European Union. Non-reciprocal market agreements are seen not to be compatible with GATT 1994, in that they treat imports from other non-ACP countries, which do not benefit from the preferences into the EU, in a discriminatory fashion. Hence, the ACP and the EU have agreed to conclude new trading arrangements, which would be compatible with WTO rules. The EPAs will enter into force in January 2008.

During his stay in Brussels, Minister Dugasse will also take the opportunity to sign two important agreements, namely the Double Taxation Avoidance Agreement (DTA) and a debt rescheduling agreement between the governments of Seychelles and Belgium.

The DTA agreement, which was concluded during the first round of negotiations in Victoria in November 2005, will widen the opportunities for attracting foreign investment by providing residents both from Belgium and Seychelles with a uniform framework with respect to taxes on income, attractive rates of withholding tax for Dividend, Interest and Royalties.

Belgium is the first OECD (Organisation for Economic Cooperation and Development) country with which Seychelles have concluded a DTA.