Toronto: India and Canada have concluded negotiations on a Foreign Investment Protection and Promotion Agreement (FIPPA) that would safeguard investors’ rights in the two countries and boost bilateral economic ties.
The announcement was made by the Minister of Commerce Kamal Nath and Canadian Minister of International Trade David Emerson at a joint press conference here.
Nath said the agreement, which is expected to be signed soon, would promote economic relations between the two countries and accelerate two-way investments.
“The agreement, designed to protect investors by defining their legally binding rights and obligations, would give new impetus to Indo-Canada economic relations,” he said.
Emerson said the bilateral commercial ties could grow exponentially after this agreement. The deal would protect and promote two-way foreign investment and would stimulate trade and investment with India, he said.
The agreement is intended to protect foreign investments against exportation or nationalization, and improve access for Canadian firms in a rapidly growing Indian market, he said.
“We have both agreed Canada and India have an enormous amount of economic and commercial potential,” Emerson said. He dismissed concerns that the deal would jeopardize the Canadian job market.Instead he felt that Indian investment would help the Canadian economy and bring more jobs to Canada, he said.
In 2006, direct investment between Canada and India reached $528 million (Rs2112 crore) and two-way trade grew to a record level of $3.6 billion (Rs14,400 crore).