Trade Agreements between India and Canada

For more information, see Trade and Investment Agreements. In 2016, Canada-India merchandise trade was worth more than $8 billion. India`s rapidly growing economy offers enormous opportunities for Canadian companies in emerging sectors such as transportation infrastructure, life sciences, clean energy technologies (p.B renewable energy integration and smart grids; carbon capture, use and storage; and energy efficiency) and renewable energy, as well as in traditional sectors such as the development of infrastructure, natural resources, defence and security, value-added food, mining and oil and gas. Science and technology collaboration, innovation and educational linkages are also important areas of opportunity for Canadian businesses. IDRC continues to be actively represented in India with projects focused on the links between climate change and migration. reduce violence against vulnerable populations; women`s rights, security and access to justice; economic opportunities for Indian workers, especially women; and improving food security. Since 1974, IDRC has programmed $143 million in India. A successful trade agreement with India would allow Canadian farmers to make better use of the growing country`s economic opportunities and allow Indian consumers to benefit from high-quality, cheaper Canadian exports. In 2010, Canada and India began negotiations on a Comprehensive Economic Partnership Agreement (CECC), the most recent round of which took place in New Delhi from August 21 to 23, 2017. Constructive discussions were held on a variety of issues, including cross-border trade in goods and services, electronic commerce, telecommunications, sanitary and phytosanitary measures and technical barriers to trade. The previous cycle, which focused on the main areas of goods, services and temporary entry, took place in March 2015 in New Delhi, India. The deep cultural and political ties between Canada and India are strengthened by a growing network of formal dialogues, understandings, memoranda of understanding and working groups.

At the ministerial level, Canada and India have a strategic partnership underpinned by ministerial dialogues: both sides made no progress after the 10th round of talks in August 2017. At that time, constructive discussions took place on various issues, including cross-border trade in goods and services, electronic commerce, telecommunications, sanitary and phytosanitary measures, and technical barriers to trade. Since then, Canadian and Indian officials have held several inventory meetings, most recently in November 2020. India is a high priority trading partner and the Government of Canada continues to work with the Government of India to expand our trade relationship to its full potential and create opportunities for Canadians, including by continuing to work on the progress of an agreement,” reads an update on the Global Portal. Canadian Government Affairs. Canada-India Trade and Investment Agreement: Canada and India are conducting bilateral negotiations for a Comprehensive Economic Partnership Agreement and a Foreign Investment Promotion and Protection Agreement (FIPA). Canada and India hold regular ministerial dialogues on trade, investment and energy. The Government of Canada is exploring opportunities to deepen our trade and investment relationship. In addition to trade promotion activities, Canada continues to make great efforts to advance negotiations for a Foreign Investment Protection Agreement (PDAC) and a Comprehensive Economic Partnership Agreement (CTA).

The Government`s approach is focused on the interests of Canadians and opportunities for the middle class, women, youth and Indigenous peoples. Expanding trade and investment with large, fast-growing markets, including India, is a priority for the Canadian government. India`s GDP growth, which is expected to be 7.2% in 2017, is among the highest in the world. In FY20, India`s exports to Canada were $2.8 billion and imports were $3.9 billion, resulting in a trade deficit of $1.1 billion. Among the main products, India exports pharmaceuticals, pipelines, shrimp and shrimp, while importing coal, potassium chloride, oil and lentils. As Canada is not a large market for Indian products, India is interested in a strong services agreement under the proposed CEPA. India wants to create more jobs for its many IT professionals by making it easier to simplify work visas for Canada under the trade agreement. Canada, a major producer of pulses, is eager to increase its agricultural exports to India. India has been keen to sign mini-trade agreements with the EU and the UK, but so far no progress has been made. Most countries are eager to sign comprehensive free trade agreements with India, rather than early harvest agreements.

India`s protracted negotiations on a mini-trade deal with the US have also failed. Canada and India have concluded their ninth round of negotiations on a Comprehensive Free Trade Agreement between Canada and India. The negotiations focused on a wide range of trade in goods and services, and since their conclusion, both sides have committed to advancing the talks in order to reach a final agreement. In September 2008, the Indo-Canadian CEO Roundtable recommended that India and Canada benefit enormously from CEPA by abolishing tariffs on a significant portion of bilateral trade. CEPA would cover trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade and other areas of economic cooperation. A joint study was conducted in September 2010 strongly recommending the benefits of CEPA for both countries. As a result, the announcement of the start of CEPA negotiations between India and Canada in November 2010 was made by the Prime Ministers of both countries in Seoul, and negotiations were officially launched in New Delhi on November 16, 2010 by the CITM and the Canadian Minister of Trade, Mr. Van Loan. Currently, India has a food tariff policy and non-tariff barriers to trade that restrict trade and sector growth for Canadian agricultural and agricultural and food producers.

For example, India currently applies a 30% tariff to all Canadian lentil exports. According to experts, the removal of tariffs on lentil products could potentially lead to a 147% increase in exports over a 5-year period. Although exports to India have increased over the past 10 years, sales exports to India account for less than 1% of Canadian trade. In addition, the Indian population is still very price sensitive. As a result, the volume of trade with India varies considerably every year. The implementation and ratification of the India-Canada Trade Agreement has the potential to increase GDP by $6 billion and lead to export gains of up to 47% (according to the DFATD). The two sides must also resolve the issue of signing an investment agreement. Negotiations on a Foreign Investment Promotion and Protection Agreement (FIPA) between the two countries were concluded under the previous United Progressive Alliance government. However, after the government submitted a model draft bilateral investment agreement (BIT) to the National Democratic Alliance that cancelled all existing BITs, FIPA was not signed. India and Canada could return to the negotiating table later this month after a nearly four-year hiatus to explore the possibility of signing a mini-trade deal.

The two sides have been negotiating a Comprehensive Economic Partnership Agreement (CEPA) since 2010, with the last round of negotiations taking place in August 2017. On the 22nd. In June 2020, an inventory of the virtual bilateral meeting of CEPA and FIPA between the chief negotiators of the two sides took place. Subsequently, a bilateral meeting was held on 27 October 2020 to discuss the option of an early/interim harvest agreement. In this regard, the scoping document was shared with the Canadian side, and on November 19, 2020, a CVD was held, and both parties committed to advancing it. So far, ten rounds of negotiations have already taken place. The 10th round took place in August 2017 in New Delhi. Canada and India enjoy a long-standing bilateral relationship based on shared traditions of democracy, pluralism and strong people-to-people ties. Canada is home to one of the largest South Asian communities abroad per capita, with about 5.6% of Canadians of Indian origin (1.9 million people). To develop effective responses to today`s most pressing global challenges, Canada and India work closely together in multilateral forums, such as: With a population of $1.2 billion and a GDP of $1.9 trillion, India is one of the world`s most populous countries and one of the fastest growing economies. More than 600 million of the population are under the age of 25 and the population is expected to reach 141 million in the next 8 years.

Requests sent by e-mail to the Ministry of Commerce triggered a response only at the editorial level. “We have had several virtual rounds of talks with the Canadian side since last June. A bilateral meeting was held in October to discuss the option of an early harvest or an interim agreement. In this regard, a scoping document has been provided to the Canadian side. A formal round of negotiations is expected to take place at the end of April,” a Commerce Ministry official said on condition of anonymity. The two sides have been negotiating a Comprehensive Economic Partnership Agreement (CTA) since 2010, with the most recent round of negotiations taking place in August 2017 After 55 years of bilateral programming in India totalling $2.39 billion, Canada`s bilateral development assistance program ended in 2006 following a change in the Indian government`s aid policy. .

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