The Canadian government expects to report progress on the Comprehensive Economic Partnership Agreement (CEPA) talks with India during Prime Minister Stephen Harper’s visit to India during November 4-9.
The free trade negotiations started in 2010, with the objective of having an agreement by 2013.
Answering a question from Business Standard during a briefing from Ottawa previewing Harper’s trip, spokesman Andrew MacDougall said a quick conclusion of CEPA talks was key to meeting the $15-billion target for bilateral trade by 2015, set by Harper and Indian Prime Minister Manmohan Singh during the Canadian leader’s previous visit to India in 2009. Bilateral trade was $5.2 billion in 2011, up about a quarter from the previous year.
MacDougall said, “Negotiating a free trade agreement and CEPA with India will be the biggest single factor that will boost trade. It’s why we’re pushing hard to get a good agreement done.” The sixth round of CEPA negotiations is scheduled to take place in Ottawa in mid-November.
The spokesman sounded less optimistic on the status of talks on nuclear trade. India and Canada announced the completion of a nuclear cooperation agreement in 2010 but are still negotiating administrative agreements tied to that. MacDougall said Canada wanted to move forward on this, as India was a big market for its nuclear fuel. However, it could not predict when the agreements would close.
“Canada has in the past negotiated these administrative arrangements to give Canada comfort that when its (nuclear) material goes in, we’re able to know where it’s being used and where it is and that continues to be the case here. That’s the outcome we want,” he said. The official made it clear the administrative agreements would have to be concluded before Canada could export uranium to India.
Also Read
MacDougall also said Canada “overwhelmingly supported” foreign investment in its energy sector, despite the uncertain fate of state-owned Chinese company CNOOC’s proposed takeover of Nexen, the oil and gas company. He also said Canada was keen to push energy exports to India.
India priority
The Harper administration has made it clear that it places a priority on stepping up ties with India. MacDougall noted this was one of the longest trips by the prime minister to a single country. The visit, to focus on strengthening economic relations, will take Harper to Agra, Delhi, Chandigarh and Bangalore.
Business groups in Canada are encouraged by Harper’s focus. Naval Bajaj, president of the Indo-Canada Chamber of Commerce, said, “For decades, Canada had a lukewarm relationship with India, owing to perceived nuclear policies and other reasons. But since the Harper government took over, this has changed and now Canada is eagerly seeking to improve bilateral relations with India that, despite the global meltdown, is progressing (the trade growth) at six per cent (yearly).”
Bajaj also called for Canada to provide greater access to workers from India. “Canada needs skilled labour mobility that India can provide, so Canada needs to make visas and immigration much easier. Canada also needs highly skilled workers to improve efficiencies and that is only possible through technology. And highly skilled workers in IT (information technology) can only come from India,” he said.
The Canada-India Business Council will host its second annual Business Forum in New Delhi to coincide with Harper’s visit. Rana Sarkar, president and CEO of the C-IBC, said: “Our business elites and our governments haven’t been as granularly engaged in India as some of the other countries for as long, so this is the opportunity to thicken things up and also to promote Brand Canada within India, extremely important to getting on their business radar.”
This is Harper’s second visit to India as PM. Accompanying him will be Ed Fast, minister of international trade, and two ministers of Indian origin, Bal Gosal and Tim Uppal, as well as a large business and cultural delegation. Contrary to earlier reports, minister of natural resources Joe Oliver and minister of agriculture Gerry Ritz won’t be part of the delegation.
The Canadian side is keen to cover a lot of ground during the visit. “We’re fighting to do more,” said an official. Harper is not ignoring the cultural side either. He and wife Laureen will visit the Taj Mahal in Agra, Humayun’s Tomb in Delhi, a temple in Bangalore and a gurdwara in Chandigarh. They will also get a taste of India, literally. On Harper’s itinerary is dinner at a restaurant in Chandigarh, which according to reports from the Indian city, will be at a local dhaba.