 "Tony Clement")
Canadian minister Tony Clement is on a visit to India (September 1-4) to explore investment and trade opportunities as well as to touch base with the new government here. Clement, who is also the president of Canada's Treasury Board, has met senior Indian government officials and business chambers. In an interview with Nayanima Basu, he talks about the problems faced by Canadian companies operating here and what can be done to strengthen the bilateral relationship. Excerpts:
Even though India and Canada enjoy a robust bilateral trade relationship, foreign investment inflows from Canada have been rather slow. Why?
Well, that is exactly why we are pushing for a bilateral investment protection agreement. Our companies are seeking the legal safeguards and representations, without which they cannot come in. The foreign investment inflow is small, but there is a huge upward potential. So once we get some of these agreements sorted out and the government addresses some of the domestic concerns, will we come here in a big way. This will provide the right kind of assurances that Canadian companies expect.
India seems to have stalled talks on the Comprehensive Economic Partnership Agreement (CEPA) with Canada. Did you raise the issue with the government?
This has been raised. We have two outstanding issues - foreign investment protection agreement (which we believe is almost ready), and the CEPA. We are a leader in free trade. We just signed comprehensive trade agreements with South Korea and the European Union. We believe trade is crucial for economic success and peace. We will continue the discussions with the new government.
India and Canada have made great strides as far as the Civil Nuclear Agreement is concerned. What is the next step now?
This is a bilateral issue. But I am satisfied that we have moved things satisfactorily along. We have gained confidence with the Indian government. We can now successfully say now we have other things on the plate to address.
Canada had been asking Indian companies to invest in the mining sector for long, but not many success stories have emerged so far. Why is that?
Canada has huge opportunities as far as energy and mining is concerned . There are big Indian companies such as the Birla and Essar Groups in the Canadian market today, which have expansion plans, and they are doing well. There have already been some success stories and we want to build on that.
India's Budget has got a mixed reaction as expectations on retrospective tax measures were huge. What is Canada's view?
Rome wasn't built on a day. So I know the expectations were huge and unprecedented. But at the same time, I have the confidence that they will progress on these issues. They have to take care with the domestic conduits. We will extend our relationship.
India recently relaxed the foreign direct investment policy in defence and railways. Will we see Canadian firms entering these segments soon?
These are areas where we see huge opportunities. We have expertise in these areas. If we look at it diplomatically, we had issues in the past but those have been smoothened out.
The Insurance Bill is stuck once again. Like other international investors, Canada, too, was eagerly waiting for the Bill to be passed...
We are a patient people and we hope this gets solved soon. Canadian companies can partner Indian companies in this area.
