Report urges Canada to follow Australia and sign trade pact with India
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Canada must seize trading opportunities provided by the fast growing Indian economy, and become one of the largest commercial partners in India in the next few years, a new report on Canadian-Indian trade said. A joint report brought by the Canadian Business Council and the Indian Business Council of Canada believes India is very necessary for Canadian strategy in the Indo-Pacific region.
“Canada has strong incentives to diversify their trade relations. The US, which contributed most of our trade, has become more protectionist in recent years – under the administration of Democrats and the Republic. And our second largest trading partner, China, has become a far more risky place to do business in the midst of deteriorating bilateral relations, “said a report entitled” Why India: Unlocking Canadian Opportunities in Indo-Pacific “. The report shows that Canada Not yet joined the new Indo Pacific economic framework was launched for prosperity and argues that the country can benefit from having a comprehensive economic partnership agreement (CEPA) with India.
Joint reports by two important Canadian trade bodies emphasized that Ottawa needs to reach the trade pact with India immediately because it will give the Canadian company “one foot” to rival from another country. Canada and India have continued the dialogue for the free trade agreement earlier this year and negotiations on the pact are expected to end in 2023 when India is scheduled to host the G20 Summit here.
The report calculates that Canadian-Indian trade appears “relatively strong” because the exports of goods to India increased by an average of 12% every year between 2001 and 2019. During this period, Canadian exports to India rose from US $ 517 million to US $ 3 , 9 billion. But these numbers do not give a “complete picture”, the report said.
It is said that India has diversified its economy and “trade orbit” has moved away from North America and Europe and is getting closer to the United Arab Emirates, China, Southeast Asian economy such as Singapore, Vietnam, Indonesia and the Philippines. Because of this change, Canada has failed to capture many trade offered by India.
Over the past two decades, Canada has only captured one percent of the growth of exports of goods, services and global intellectual property aimed at India. Bilateral investment is also underdeveloped, alarming sign when India is ready for an investment explosion, “said a press release issued by the Indian Canadian Business Council of the Comprehensive Economic Partnership Agreement with India is expected to help Canada return to the trading orbit that New Delhi has shifted from and helps Canada competes with economies such as UAE, China and Vietnam which emerged as the main trading partners of India. A joint report says that a comprehensive economic partnership agreement can almost double bilateral trade to $ 8 billion US. Warning notes
in this case, the report quoted the benefits received by Australia because the trade pact that was signed with India in April this year. The report, however, made a warning note saying that the trading pact with India alone would not help because it would need the Canadian side to get out of the “comfort zone”.
“There are opportunities but also urgency in India. Canadian colleagues, including Britain and Australia, move aggressively to get trade benefits. Canada has the opportunity to be there with them with a trade agreement that is carried out correctly, being able to pay economic dividends for the next few decades, “the report said.
Canada must seize trading opportunities provided by the fast growing Indian economy, and become one of the largest commercial partners in India in the next few years, a new report on Canadian-Indian trade said. A joint report brought by the Canadian Business Council and the Indian Business Council of Canada believes India is very necessary…