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Switzerland Revokes ‘Most Favored Nation’ Status for India
International Desk
14 Dec 2024, 09:59
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Switzerland has revoked the “Most Favored Nation” (MFN) status previously granted to India. Analysts suggest this move could pose new challenges for India’s export sector and impact trade and economic relations between the two countries.
Following this decision by the Swiss government, the withholding tax rate for Indian companies in Switzerland will revert to 10%. Previously, in 2021, this rate had been reduced to 5%. The report was published by India Today.
According to World Trade Organization (WTO) rules, granting MFN status to a country requires the provision of special privileges related to tariffs and trade policies. Under the MFN clause, if India and a third OECD (Organization for Economic Cooperation and Development) country enjoy lower tax rates on dividends, interest, royalties, or technical service fees, these benefits must also apply between India and Switzerland.
However, a ruling by India’s Supreme Court in September 2023 created a roadblock in this arrangement. The case involved the Swiss-based company Nestlé. The court ruled that, under Section 90(1) of India’s Income Tax Act, such provisions of a double taxation avoidance agreement cannot be enforced without a specific notification.
Following this ruling, Switzerland’s Finance Department announced on Wednesday that the MFN status granted to India cannot be directly applied without such a notification. Consequently, Switzerland decided to suspend the unilateral application of MFN benefits starting January 1 of the coming year.
During a weekly press briefing on Friday (December 13), Indian Ministry of External Affairs spokesperson Randhir Jaiswal addressed Switzerland’s decision. He stated, “I believe the matter will be revisited under the EFTA (European Free Trade Association) framework regarding the double taxation avoidance agreement. That’s one aspect. The other is the ‘Most Favored Nation’ clause. I don’t have any updates on this right now. We will provide details later.”
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Dr. Yunus to Al Jazeera: / Interim Government's Tenure Will Be Less Than Four Years
The tenure of the interim government could be four years or even shorter, said Chief Advisor Dr. Muhammad Yunus in an interview with Al Jazeera.
Dr. Yunus, the Chief Advisor of the interim government, recently participated in the United Nations Climate Conference held in Baku, Azerbaijan. During the event, he gave an interview to Qatar-based broadcaster Al Jazeera, addressing various questions about Bangladesh’s current state and future plans.
Dr. Yunus stated that there is a possibility of amendments to the Bangladeshi Constitution. In the amended constitution, the government's term might be set at four years. However, he emphasized that the tenure of the interim government would definitely be less than four years.
“We are an interim government, not a permanent one. Regular governments serve a five-year term. In the new constitution, the term might be reduced to four years because people want shorter government tenures. Therefore, it should certainly be less than four years and could be even shorter. This entirely depends on what the people and political parties want,” he said.
Regarding the timing of the next election in Bangladesh, Dr. Yunus mentioned that no decision has been made yet. He said the interim government’s goal is to complete necessary reforms as quickly as possible.
Highlighting the formation of various reform commissions, he explained that preparations for the election and the completion of all reforms are progressing simultaneously. He also assured that decisions in the "new Bangladesh" would be made based on the consensus of both the people and political parties.
When asked about the potential return of former Prime Minister Sheikh Hasina, who fled to India amid student and public protests, he responded that her return would depend on the outcome of ongoing legal proceedings. If she is found guilty, efforts to bring her back would be pursued accordingly.
When his attention was drawn to an Awami League statement referring to Sheikh Hasina as "Prime Minister of Bangladesh," Dr. Yunus remarked, “She can call herself many things, but that doesn’t reflect reality. Even India has referred to her as the former Prime Minister. So, even her host country does not recognize her as anything but the former Prime Minister.”
Dr. Yunus claimed that his government is striving to rescue Bangladesh from the grip of corruption caused by the Awami League's 16-year-long autocratic governance.
Reliance Chairman Ambani Could Bring Humanoid Robot Like Elon Musk
Mukesh Ambani-backed Addverb Technologies Ltd will introduce its first-ever humanoid robot in 2025, according to a Bloomberg report. These robots can do tasks relevant to industries such as fashion, retail, and energy.
This comes amid the introduction of such types of robots to help perform unimportant or time-consuming tasks by companies including Elon Musk's Tesla, Boston Dynamics, Agility Robotics, Figure AI, and some others including Chinese ones.
India and Asia's richest person Ambani entered this space to take on players from the US and China.
The Noida-based Addverb's humanoid robots can perform tasks relevant to industries such as fashion, retail, and energy, the report quoted CEO Sangeet Kumar as having said. However, prices along with specifics of actions the robots can perform haven't been mentioned.
Apart from Addverb, Ambani also backed Hanooman AI, which was launched by BharatGPT this year.
Meanwhile, Elon Musk unveiled the the new Robotaxis and Tesla Optimus during the "We, Robot" launch event, and said humanoid robots would soon hit the markets.
Tesla is expected to launch the Optimus humanoid robots at around $20,000-25,000, with them likely becoming common by 2040.
Addverb's Sangeet Kumar meanwhile said it would require "huge money" to build humanoids, but that his robots were ready to compete with global companies from the US, Europe, and China, despite China's robots being government-subsidized.
Putin Signs Decree Allowing Nuclear Retaliation
Russian President Vladimir Putin has authorized the use of nuclear weapons by the Russian military in the ongoing Russia-Ukraine war. On Tuesday, November 19, he signed a decree to this effect. Analysts believe this move is a response to Ukraine's alleged authorization by the United States to strike deep into Russian territory using U.S. missiles.
The decree, pointing toward the United States, states that if a missile attack is carried out on Russia with the support of a nuclear-armed nation, Moscow will have the authority to retaliate with nuclear weapons.
According to a BBC report, Tuesday marked the 1,000th day of the Russia-Ukraine war. On this day, President Putin updated Russia's nuclear policy and signed the decree, Kremlin spokesperson Dmitry Peskov informed reporters during a briefing.
The new decree specifies that if a non-nuclear nation is provided with such destructive weapons by a third country or entity, Russia reserves the right to use nuclear weapons against that nation.
Speaking at a briefing held at the Kremlin in Moscow, Peskov said, "If a nuclear-armed country forms an alliance with an aggressive non-nuclear state, it transforms into a joint attack rather than an isolated one. In such a situation, we have taken the necessary measures while upholding our principles."
Peskov added, "Russia has always opposed the use of nuclear weapons. However, we are compelled to make this decision to safeguard our security, sovereignty, and territorial integrity."
Previously, on Sunday, outgoing U.S. President Joe Biden reportedly authorized Ukrainian President Volodymyr Zelensky to use long-range U.S. missiles for strikes within Russia. Within two days of this authorization, Putin signed the decree regarding the use of nuclear weapons.
Elon Musk's Starship Rocket Launch Witnessed by Trump
In the presence of newly elected U.S. President Donald Trump, SpaceX conducted a test launch of its next-generation Starship rocket. The launch took place on Tuesday, November 19, at the Boca Chica launchpad in Brownsville, Texas.
According to Al Jazeera, this marks the sixth test flight of SpaceX’s Starship rocket. Trump observed the launch from the control room, and SpaceX declared the test a success.
The Starship is designed to travel to space and return to Earth, with the goal of landing back on its launchpad. While SpaceX had achieved this feat during the fifth test flight, technical challenges led to a shift in strategy.
The AFP reports that SpaceX abandoned plans to catch the booster, opting instead to let it fall into the Gulf of Mexico. After spending about an hour in space, the Starship is expected to re-enter Earth’s atmosphere and land in the Indian Ocean.
Trump's presence at the launch highlighted the close relationship between him and Elon Musk. Musk openly supported Trump in the recent U.S. election, contributing over $130 million to his campaign.
US Charges Indian Billionaire Gautam Adani in Bribery Case
Gautam Adani, the billionaire chairman of Indian conglomerate Adani Group, has been indicted in New York, charged with paying hundreds of millions of dollars in bribes as part of a massive fraud scheme.
Adani, who commands a personal fortune of $69.8 billion (€65.3 billion) according to Forbes magazine, is one of the world's richest people.
He is alleged to have agreed to bribe Indian officials to the tune of about $265 million in return for lucrative solar energy contracts.
What does the indictment say?
"This indictment alleges schemes to pay … bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice," said Deputy Assistant Attorney General Lisa Miller.
The contracts in question were expected to yield profits of over €2 billion over the next 20 years for Adani and seven fellow defendants, including his nephew Sagar Adani.
"Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses ... while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government's investigation," said the FBI's James Dennehy.
According to the indictment, some conspirators would use the codenames "Numero uno" and "the big man" to refer to Adani in private. Nephew Sagar allegedly logged specific details of bribes on his phone.
Neither Adani Group nor the defendants' lawyers nor the Indian Embassy in Washington have yet commented on the indictment.
None of the defendants in the case, including Adani, are currently in custody but a judge has issued arrest warrants which prosecutors plan to pass on to foreign law enforcement.
Who is Gautam Adani?
Adani was born in Ahmedabad, in India's western Gujarat state, to a middle-class family. At the age of 16 he dropped out of school and moved to financial capital Mumbai to seek work in the city's lucrative gem trade.
He launched the family business which bears his name in 1988 when he branched out into the export trade. Seven years later, he landed a major contract to build and operate a commercial shipping port in Gujarat.
A self-described introvert, Adani rarely speaks to the media and keeps a low public profile.
He is known, however, to be a keen supporter of Hindu nationalist Prime Minister Narendra Modi. He also recently took to X, formerly Twitter, to congratulate US President-elect Donald Trump on his election win.
With Trump promising to make it easier for energy companies to drill and build new pipelines, Adani last week announced plans to invest $10 billion into energy security and infrastructure projects in the United States, potentially creating up to 15,000 jobs.
Indian Navy Submarine Collides With Fishing Boat, 2 Fishermen Missing
"An Indian fishing vessel Marthoma with a crew of 13 reportedly collided with an Indian Naval unit on November 21 about 70 nm North West of Goa," an Indian Navy spokesperson said.
The Ministry of Defence said in an official statement that the vessel Marthoma collided with a Scorpene-class submarine about 70 nautical miles off the Goa coast.
Eleven crew members were rescued, and the search operation to find the two missing crew members is ongoing and coordinated with the Maritime Rescue Coordination Centre (MRCC) in Mumbai. The Navy has ordered a high-level probe into the matter.
A spokesperson from the Navy said additional assets, from the Coast Guard, were being mobilized and diverted to the area of the incident to help with the rescue efforts.
The Navy deployed six ships and an unknown number of surveillance aircraft in the rescue mission.
The fishing vessel collided with a Scorpene class submarine - which is a crucial part of India's naval strength, capable of executing a wide range of functions, including anti-surface warfare, anti-submarine warfare, intelligence gathering, mine laying, and area surveillance.
It has superior stealth techniques and low noise levels, making it a deadly and precise weapon.
The cause of the collision between the submarine and the fishing vessel is currently under investigation. The Indian Navy has not released further details on the condition of the two remaining crew members or the vessel's status.
In August this year, a fishing boat collided with a Sri Lankan naval vessel and one fisherman drowned, off the coast of Tamil Nadu.
Xi Jinping Visits Morocco, Meets Crown Prince
China's investments in Morocco's infrastructure and railway have grown in recent years. Xi made the "brief visit" to the African country after wrapping up the G20 summit in Brazil.
Chinese President Xi Jinping landed in Morocco on Thursday for a "brief visit," according to Moroccan state media.
Xi was welcomed in Casablanca by Crown Prince Moulay El Hassan, which Morocco's state news agency MAP called a reflection of strong bonds of friendship, cooperation, and solidarity between the two countries.
Xi then met Aziz Akhannouch, head of the Moroccan government, and went on to receive honors from the Royal Guard.
The Chinese president visited his trip to Brazil for the G20 Summit.
China eyes Morocco for investment
It comes at a time when China has stepped up its investments in Morocco's infrastructure and railways.
Morocco's proximity to Europe and its free trade agreements with the US and EU make it a lucrative market for Chinese businesses, including electric vehicle manufacturers.
In June, Chinese battery maker Gotion High Tech announced plans to build Africa's first "gigafactory" for $1.3 billion (€1.24 billion).
