Launch of Free Trade Agreement Negotiations with India
Status of the negotiations
In July 2011, Canada and India completed the second round of negotiations toward a Comprehensive Economic Partnership Agreement (CEPA). In the second round, progress was made in the areas of goods, services, origin procedures, temporary entry for business persons, technical barriers to trade, sanitary and phytosanitary measures, and institutional provisions. Subsequent negotiation rounds are tentatively scheduled for the fall of 2011. CEPA negotiations remain a key priority in the Government of Canada’s international trade plan; Canada will seek to conclude the CEPA in 2013.
Background
The Honourable Peter Van Loan, Minister of International Trade, launched free trade negotiations with India during his visit to New Delhi on November 16, 2010. At the opening session of these negotiations, Minister Van Loan highlighted the importance of cooperation and creativity in reaching a broad and ambitious free trade agreement. (See News Release - November 16, 2010)
On September 24, 2010, the Honourable Peter Van Loan, Minister of International Trade, announced the results of a Joint Study on the potential benefits of a comprehensive economic partnership agreement (CEPA) between Canada and India. The announcement was made in Ottawa together with India’s Minister of Commerce and Industry, Anand Sharma, after the First Annual Ministerial Dialogue on Trade and Investment.
The study’s publication fulfils a commitment made by trade ministers on Novemebr 17, 2009, during Prime Minister Harper’s visit to India, when Canada’s and India’s leaders announced the creation of a Joint Study Group to explore the possibility of a comprehensive economic partnership agreemet and to complete a Joint Study within six months (News Release – November 17, 2009.)
The Joint Study Group, comprised of Canadian and Indian officials, concluded in the report that there was sufficient common ground to recommend moving ahead with next steps towards negotiation of a comprehensive agreement covering substantially all trade in goods and services; investment; trade facilitation; and other areas of economic cooperation, as a 'single undertaking', leading to additional trade flows and economic gains.
Under Canada’s Global Commerce Strategy, the government is working to advance Canada’s trade interests by opening up new opportunities for Canadian exporters, investors and innovators. The strategy includes an aggressive trade negotiation agenda, aimed at securing competitive terms of access in markets that offer significant potential for our products and expertise. Based on extensive consultation with government, academic and Canadian business and industry representatives, the Government has identified priority markets around the world where Canadian opportunities and interests have the greatest potential for growth. The Government of Canada considers India to be a priority market, and we are delivering on our commitment to strengthen our relationship. In line with enhancing this bilateral engagement, on September 2, 2008, the Canadian Council of Chief Executives and the Confederation of Indian Industry issued a joint report entitled “India and Canada: A New Era of Cooperation” which makes recommendations on how to deepen our bilateral economic relationship.
The Joint Study Group engaged in substantive discussions on the parameters of a possible comprehensive economic partnership agreement. The thrust of the exploratory analysis, together with the Joint Study Group's findings and recommendations, are presented in this Government of Canada and Government of India Joint Study.
The Joint Study Group undertook economic modelling work which confirms the quite substantial and symmetric gains to be achieved through the elimination of barriers to trade. The Canadian modelling exercise estimates gross domestic product gains of 0.4 per cent for Canada and 0.5 per cent for India, which amount to approximately US$6 billion at current gross domestic product levels for each country. India’s modelling exercise, based on different assumptions, produced larger gains (1 per cent of gross domestic product, or US$12 billion for India and US$15 billion for Canada).
Canadian modelling work also shows substantial gains in bilateral trade, for Canada as high as 47 per cent and for India as high as 60 per cent. Canada's gains in exports to India would be widely spread across sectors, ranging from primary agricultural and resources-related products, to chemical products, transport equipment, machinery and equipment and services, while India's leading gains in exports to Canada would be concentrated in textile and apparel products and services.
Now one of the fastest-growing economies on the planet, India is projected to be the world’s third largest economy by 2050. India’s growing population, rising per capita income levels, rapidly expanding manufacturing, high-technology and services sectors, and the associated infrastructure and natural resources requirements make it a tremendous market of opportunity for Canadian companies
Consultations
The government appreciates the input of all Canadians who have contributed to the consultative process to date and wishes to assure them that their views will be taken into account as the Canada-India initiative proceeds and in the development of Canada's trade agenda more broadly.
Consultations will continue throughout the negotiations and Canadians are encouraged to provide their comments and input on trade issues.
Ongoing Canada-India CEPA negotiations Consultations include:
- Questionnaire on a CEPA between Canada and India | DOC * (260 KB)
The Department is conducting consultations on various issues pertaining to the negotiations with India, including the areas of trade in goods, trade in services, temporary entry of business persons, and investment.
Previous Canada-India CEPA negotiations consutlations include:
The Government of Canada sought the views of Canadians on the scope of a possible comprehensive economic partnership agreement between Canada and India. This information was taken into account in the decision to proceed with negotiations with India and in the development of Canadian positions for this initiative.
If you have questions or comments about this initiative we would like to hear from you. Please contact Foreign Affairs & International Trade Canada at:
Trade Negotiations I Division (TPE)
Canada-India CEPA Negotiations
Foreign Affairs and International Trade Canada
125 Sussex Drive, Ottawa, ON K1A 0G2
Fax: 613-944-0757
Email: consultations@international.gc.ca
Interesting Links
- The Canadian High Commission in India
- Canadian International Development Agency
- Export Development Canada – Country Overview
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