The first tax information exchange agreement (TIEA) to be signed on Bermuda soil was concluded between Bermuda and the Portuguese Republic yesterday.

At a ceremony held at Camden, Finance Minister Paula Cox and Portugal's Secretary of State for Fiscal Affairs Professor Sergio Vasques, for whom it was also his first TIEA signing, both signed and then exchanged their respective agreements in front of a crowd of Cabinet Ministers and business people, including Cheryl Packwood, CEO of Business Bermuda, Greg Wojociechowski, CEO of the Bermuda Stock Exchange, and Leila Madeiros, senior vice-president and corporate secretary of the Association of Bermuda Insurers and Reinsurers.

Also in attendance was Portugal's Secretary of State for Fiscal Affairs adviser, as well as members of the Island's Portuguese community: Ana Rita do Livramento Chacim, acting consul for the Consulate of Portugal in Bermuda, Ana Rosa Freitas, president of the Vasco Da Gama Club Paul Fortuna, and Eddy DeMello.

Mr. Vasques said that Portugal decided to sign the TIEA with Bermuda due to its commitment to the enforcement of international standards for tax and transparency and its strong links with the Portuguese community. Speaking on the financial turmoil that has gripped the Euro Zone in recent weeks after the ceremony, he said: "We are undergoing a very serious financial crisis and we are doing our best to persuade the markets that we are willing to to take the necessary measures to deal with it."

He said Portugal was committed to combating tax evasion and signing the tax agreement with Bermuda would further strengthen its cause.

Minister Cox said the completion of the treaty signing, which followed the conclusion of negotiations in December 2009, was a "significant step" in the long-standing close relationship between the two countries.

She said there were currently 70 entities based in Bermuda with a Portuguese interest and the agreement would benefit Portuguese investors in Bermuda companies and help boost commerce between the two jurisdictions, as well as highlighting the strong cultural ties dating back to the 1840s when Portuguese settlers first started immigrating to the Island and the big Portuguese contingent of nine percent of the population.

"This is the second instance of Bermuda negotiating directly with Portugal, following the signing of the Bermuda Azorean Accord in 1991 which expanded the rights of Azoreans to work in Bermuda," she said.

"Bermuda's treaty with the Portuguese Republic will further strengthen and deepen our relationship and provide immense opportunities for further business links between Bermuda and Portugal."

Minister Cox said that Mr. Vasques had the opportunity to meet with local business leaders, including at the Bermuda Monetary Authority and Business Bermuda, to get an update on the Island's regulatory standards and work as a financial centre.

She added that Bermuda would continue to work alongside Portugal as members of the Organisation for Economic Co-ordination and Development's Global Forum on Transparency and Exchange of Information for Tax Purposes and shared a mutual commitment to implementing the international standards for transparency and exchange of information for tax purposes, as well as looking forwarding to welcoming the Portuguese Republic's delegation to Bermuda for the 2011 Global Forum.

This agreement marks Bermuda's 21st signed agreement, with provisions for the exchange of information for tax purposes.