The problem concerning visas for Indian information technology workers travelling to Canada for work might not be solved for some time yet, though minister for commerce and industry, Anand Sharma, has urged for an early solution. The Canadian government wants to handle the issue within the framework of the Comprehensive Economic Partnership Agreement (CEPA) being discussed.
“There is no quick-fix solution to this problem, as there are sensitivities on both sides and so we are continuing to have discussions. All these issues would be eventually resolved within the negotiations for CEPA, as they include provisions for labour mobility,” Edward Fast, minister for international trade, Canada, told Business Standard in an interview.
On a four-day visit to India, he also said trade in services forms a crucial part in the CEPA negotiations, as both countries aim to increase bilateral trade to $15 billion by 2015 from around $1.5 bn at present.
The next round of negotiations will take place by the middle of December. During his meeting with minister Sharma, both sides identified some crucial areas that would be discussed, starting 2012, as both are planning to close the deal by 2013.
“The negotiations are well on track and proceeding forward. Both minister (Anand) Sharma and I agree that the CEPA will be a catalyst for achieving the goal of tripling the bilateral trade. We are hoping for an ambitious conclusion to the negotiations some time in 2013. That’s our aim,” Fast said.
ON AGENDA
By early next year, both governments are going to sign the much-awaited Foreign Investment Protection Agreement and a Bilateral Social Security Agreement, after ironing out all contentious issues. “Both sides are working on these agreements to find out a scheduling to get these signed. They are now settled. I expect these agreements would be signed some time next year. They are both a priority for us,” Fast added.
The minister also met finance minister Pranab Mukherjee last Friday. He will be travelling to Mumbai, Pune and Ahmedabad. With him is the Canadian government’s chief trade negotiator, Don Stephenson, to identify the sectors where Canada can gain access to the Indian markets.
“There are significant opportunities for Canada to expand its trade in India in areas such as infrastructure and education. We are also looking to open up markets for services and goods such as seafood and fisheries,” said Fast.
The Canadian minister also ruled out the possibility of any possible block that might come in the way of the deal getting signed.
“I do not presume that there are going to be roadblocks. There are going to be challenges, as they are with any free trade negotiations. Each country has a number of key interests it wants to pursue and the markets that they have to open up,” he said.
During this visit, the minister has also raised some challenges faced by Canadian companies doing business in India. Fast said both Canadian firms and exporters face a number of non-tariff barriers, including sanitary and phyto-sanitary measures.
