India, Canada FTA To Boost Trade, Investments.

The proposed comprehensive market opening pact between India and Canada, once implemented, would boost the bilateral commerce and give a competitive advantage to businesses of both the countries, a Canadian official today said.

Both the sides expect that the bilateral trade between the two countries would be tripled to $ 15 billion by 2015 from $ 5 billion currently.

The two sides have been negotiating a Comprehensive Economic Partnership Agreement (CEPA) since November 2010 and have set a target to conclude the pact within 18 months.

"It (free trade agreement) would play a major role (in boosting trade) by reducing tariffs on goods... And would give a competitive advantage to businesses of both the countries," Acting High Commissioner of High Commission of Canada in India Mario-Ste-Marie said here.

Two rounds of negotiations have already completed, he added.

As per a joint study group report, both countries will benefit from the CEPA. According to the report, India and Canada's GDP are likely to get benefit in the range of $ 6 billion to $ 15 billion per year, respectively, from the trade pact.

Asked, by when the pact is expected to be concluded, Marie said, "It (the deadline) is very ambitious, but that is the best way to achieve the set ambitious deadline. So, both sides seem to be interested to conclude it as soon as possible."

Canada primarily exports vegetables, fertilizers, machinery and wood pulp, while its main imports from India include organic chemicals, knit and woven apparel, precious stones and metals, electronics and machinery.

India has already operationalised a similar trade pact with South Korea and Singapore and recently concluded a comprehensive free trade agreement with Japan and Malaysia.

India and Canada are also negotiating an Audio-Visual Co-production Treaty. Under this, film and music producers of both the countries would get tax benefits besides other incentives.

The potential areas of cooperation between the two nations include education, energy, food, agriculture, civil nuclear, IT and communication.

Arvind Mehta, Joint Secretary in the Ministry of Commerce said that the low-cost and innovativeness of the Indian manufacturers would be of great help to Canada, which is now looking towards countries beyond North American Free Trade Agreement (NAFTA) for trade expansion.

To explore new markets for engineering exports, Engineering Export Promotion Council (supported by Ministry of Commerce) would organise a "India Show" at Toronta, Canada in October this year.

About 150 Indian companies would participate in the three-day exhibition, starting October 17.

Mehta also indicated that North America and Europe have been the traditional focus markets for India's engineering exports, contributing 31.07 per cent share.

India's engineering exports jumped 85 per cent to $ 60.1 billion in 2010-11, on account of a robust demand for the goods not only from major markets like the US, but also from Latin America.

Source : mydigitalfc.com