Canada to further enhance bilateral trade ties with India

The two way trade between India and Canada is expected to increase further as both the nations are working on the modalities of a Comprehensive Economic Partnership Agreement (CEPA). At the round table discussion with the Indo-Canada Chamber of Commerce (ICCC), Minister of International Trade, Ed Fast said “India was a priority country for Canada in terms of forging better economic relations.”

Earlier this week, Canadian and Indian officials held a successful meeting in Ottawa, where they worked toward a comprehensive economic partnership agreement. There is opportunity here, and we are seizing it in order to protect and strengthen the financial security of hardworking Canadians,'' the Canadian minister said. Adding further he said, 'with trade representing some 60% of Canada's economy, strengthening and increasing trade and investment with India is vital to our economic recovery. Building on the already strong ties we have with India will lead to new opportunities and stronger economies for both countries.'

Indian origin, Bal Gosal, who is the Minister of State for sports in the Canadian cabinet said, 'Forging closer Canada-India ties is a key priority for our government, and today's round-table discussion puts even greater emphasis on this important relationship. Our ongoing negotiations toward a free trade agreement are a clear indication of our commitment to strengthening this relationship.''

A Canada-India joint study in 2010 concluded that the free trade may increase Canada’s economy by at least $6 billion and increase bilateral trade with India by 50%. For 2010-11, bilateral trade between India and Canada was at around $4.2 billion. Both the nations are expected to sign CEPA, with the target of tripling trade by 2015. Indian goods face 9% tariff whereas Canadian goods face 16% tariffs. However, after implementation of CEPA and removal of tariffs, the bilateral trade between both the nations will increase to $15 billion. At present, India is the 15th largest trading partner for Canada and Canada is 33rd trading partner for India.