Canada And India Trade Agreements

Expanding trade and investment in large, fast-growing markets, including India, is a priority for the Canadian government. India`s GDP growth, expected to reach 7.2% in 2017, is one of the highest in the world. Faced with the COVID 19 pandemic and the deteriorating relations between the United States and China, which control new global concerns about supply chain security, many observers felt that India – a democracy with a population almost as large as China – is potentially a safer economic and trade partner. Despite cordial relations, trade between Canada and India is below its potential. In 2014, India accounted for less than 1% of total Canadian exports and imports, with bilateral trade at $5.77 billion in 2014 (compared to more than $56 billion in bilateral trade between China and Canada). Nevertheless, overall trade between the two countries has continued to grow over the past five years. [20] Canada and India concluded their ninth round of negotiations under a comprehensive free trade agreement between Canada and India. Negotiations have focused on a wide range of issues related to goods and services and, since they were completed, both sides have committed to moving the discussions forward towards a final agreement. Mr. Jaishankar noted that India rejected the RCEP for the same reason that it might give a different perspective on expanding trade with Canada. On the business side, Mr.

Champagne said one of the most important challenges for Canada was negotiating legislation protecting foreign investors, which would complement a free trade agreement. Such an agreement would create dispute resolution mechanisms for Canadian companies operating in India (and vice versa) if they conflict with local players. Canada and India have a thriving trading relationship. Since 2004, despite the recession of the late 2000s, trade has increased by more than 70%. In 2009, Canadian exports to India totaled $2.1 billion, while Canadian imports from India totaled $2.0 billion in the same year, resulting in a trade surplus of $100 million for Canada. [2] India celebrated 2012 as the year of India in Canada to promote trade, cultural and political relations with India. RCEP is a rival to the Trans-Pacific Partnership trade bloc with 11 nations, leaving New Delhi and Canada on the edge of a free trade area that includes China, Japan, South Korea, Southeast Asia, Australia and New Zealand.

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