Minister says a foreign investment promotion and protection agreement will boost two-way investment with India and benefit Canadian businesses, including small and medium-sized
(No. 334 - November 7, 2011 - 12:15 p.m. ET) The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today highlighted the increased benefits to both Canada and India to be gained once a foreign investment promotion and protection agreement (FIPA) is in place. Minister Fast promoted the agreement while visiting the high-tech manufacturing facility of Valiant-TMS Systems Pvt. Ltd., a Canadian engineering design and manufacturing company located in Pune, India, that employs 550 workers in Canada and India.
“Small and medium-sized businesses like Valiant are the backbone of the Canadian economy and the engine of growth,” said Minister Fast. “A foreign investment promotion and protection agreement with India will increase job-creating, two-way investment between our countries by giving both Canadian and Indian companies the predictability, stability and protection they need to expand their operations. In my discussions with India’s Minister of Commerce and Industry, Anand Sharma, in Delhi, we reiterated our shared commitment to finalizing a FIPA between our two countries as soon as possible.”
“As we develop innovative manufacturing solutions for our customers—from large multinational corporations to smaller local companies—we are well positioned to facilitate and accelerate India’s continued economic growth,” said Krishan Atri, Managing Director (Asia Pacific), Valiant-TMS Systems Pvt. Ltd. “We welcome any tool that helps us invest with greater confidence.”
Foreign investment promotion and protection agreements offer a level of protection and predictability that helps businesses invest in foreign markets with greater confidence. To date, Canada has agreements in force with 24 countries. These are Argentina, Armenia, Barbados, Costa Rica, Croatia, the Czech Republic, Ecuador, Egypt, Hungary, Jordan, Latvia, Lebanon, Panama, Peru, Philippines, Poland, Romania, Russia, Slovakia, Thailand, Trinidad and Tobago, Ukraine, Uruguay and Venezuela.
“Our government is committed to opening new global opportunities for Canadian small and medium-sized businesses abroad in order to create good new jobs for Canadian workers and their families,” said Minister Fast. “This is why our government is focusing on strengthening economic growth and opening new markets for Canadian workers and small and medium-sized businesses, and generating prosperity in Canada and abroad.”
In 2010, bilateral merchandise trade between Canada and India totalled $4.2 billion, an increase of 46.6 percent since 2005. In 2010, the stock of two-way direct investment was more than $7 billion.
Prime Minister Stephen Harper and Indian Prime Minister Manmohan Singh have committed to tripling bilateral trade to $15 billion annually by 2015.
For more information on Minister Fast’s visit to India, please visit: Trade Mission to India.
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A backgrounder follows.
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Office of the Honourable Ed Fast
Minister of International Trade and Minister for the Asia-Pacific Gateway
Trade Media Relations Office
Foreign Affairs and International Trade Canada
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Valiant Corporation was founded in 1959 in Windsor, Ontario, where it is headquartered. With several affiliated companies located in North America, Europe and Asia, Valiant provides manufacturing solutions and technology to the automotive, aerospace and defence, heavy equipment, alternative energy materials, and consumer products sectors. The company has approximately 1,100 employees worldwide, with about 550 of those located in Canada and India. Valiant has received the Boeing Performance Excellence Award three years in a row (2007 to 2009).
Valiant-TMS Systems Pvt. Ltd., founded in Pune, India, in 2009, specializes in advanced engineering design and manufacturing, as well as purchasing services, in the Asia-Pacific region.