BackForging a profound friendship
Canada and India complement each other and can become significantly more important trading partners
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The rapidly changing global economy provides an excellent opportunity for Canada and India to capitalize on our growing bilateral trade relations and our strong people-to-people ties. We can leverage these changes to stimulate economic growth and job creation.
Our countries may be geographically distant but we share important values. Together, we recognize the importance of free trade, open markets, democracy and good governance for more resilient growth and prosperity.
The Stephen Harper government looks forward to the opportunity the election of Narendra Modi presents to build on the progress made in the past few years to strengthen trade and investment ties between our countries.
Canada understands the importance of new inward investment into all regions of India. Prime Minister Narendra Modi is calling for foreign investment to enhance manufacturing, revitalize India’s infrastructure and provide energy security.
In this regard, Canada remains committed to deepening investment ties and is keen to see our Foreign Investment Promotion and Protection Agreement (FIPA) ratified. It would provide greater assurance to our investors and serve to promote both India and Canada as destinations for investment by establishing a predictable investment climate.
In addition, last year, Canada and India signed an agreement to increase business to business cooperation in the Information and communications technology sector. We have also finalized a Social Security Agreement in 2012, which ensures that those who have lived or worked in both our countries receive the benefits they have earned.
Most recently, an audiovisual coproduction treaty came into force on July 1 to allow producers to combine their creative, technical and financial resources. And finally, Canada and India are negotiating a Comprehensive Economic Partnership Agreement.
I will be leading a trade mission to India shortly that will focus on the sectors identified under Canada’s recently released Global Markets Action Plan that offer the greatest opportunity for growth.
Food security first comes to mind. Canada is India’s largest supplier of pulses and an important potash exporter. Canadian companies are also technology leaders and those engaged in refrigeration are playing a key role in preventing food spoilage and enhancing food security in India.
Canadian companies and universities are also working with Indian farmers to improve their income by minimizing post-harvest losses, and improving food processing and cold-chain distribution systems through technology transfer and capital investment in both dairy and crops.
Energy is another area of high potential for closer cooperation. Canada is a natural-resources powerhouse and can assist India with meeting its energy needs. In this context, the Canada-India Ministerial Energy Dialogue was successfully launched last year.
Canada is already supplying India with a modest but growing supply of petroleum and could become an important supplier of liquefied natural gas (LNG) to India. Investment opportunities in energy infrastructure are arising on both sides. In addition, the Nuclear Cooperation Agreement between India and Canada came into force last year and allows for trade of controlled nuclear materials.
Canada’s world class education institutions and state of the art research facilities, as well as its safe and multicultural society, can provide high quality education to Indian students. Today, India is the second largest source of international students in Canada and I am confident that more and more Indian students will choose Canada for higher education in the coming years.
These are but a few of the many areas that hold potential for greater Canada-India cooperation.
To advance our enhanced bilateral relationship, our trade office in Bangalore was recently upgraded to a consulate general. Canada’s trade network in India is now our third largest globally and is also the second largest foreign network in India.
The economies of Canada and India complement each other and, in an increasingly global world, we can become significantly more important trading partners. Today, our governments are working hard to deepen this relationship.
We have a lot to build on: we share similar traditions and values; we are pluralistic societies; we value democracy, solidarity and human rights. Such bonds not only form the basis of a profitable relationship, but also of a profound friendship.
Ed Fast is Canada’s minister for international trade.
Comments are welcome at theirview@livemint.com
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