India and Canada have vowed to enhance their bilateral trade to $15 billion (Rs 70,200 crore) a year by 2015, even as the two countries explore opportunities to establish a Comprehensive Economic Partnership Agreement (CEPA) soon to boost trade, Jim Nickel, deputy head of mission, Canada, told Nayanima Basu in an interaction. He also said the two countries were working towards ratifying the deal on civil nuclear energy cooperation. Edited excerpts:
What is the potential of bilateral trade between India and Canada, especially at a time when it has seen a decline due to the economic recession? Where do you see it heading?
Despite the slow global economic recovery, the potential for expansion in trade between Canada and India is tremendous. During a meeting on the margins of the recently-held G-20 meeting, Prime Minister (Manmohan) Singh and Prime Minister (Stephen) Harper reiterated their shared goal of increasing bilateral trade to $15 billion (Rs 70,200 crore) annually in the next five years. Since bilateral merchandise trade stood at around $4.1 billion (Rs 19,188 crore) at the end of 2009, there is clearly much work to do before we get there. However, merchandise trade is only one part of the story. Bilateral investment has quadrupled over the last three years, reaching a record $3.6 billion (Rs 16,848 crore) in 2009, demonstrating that our business communities’ are committed to working together.
Last year, the two prime ministers had launched a joint study group to explore the possibility for a CEPA. What is the status of the study and how important it is to have a CEPA between the countries?
The CEPA joint study is one example of how Canada and India are working to realise our shared goal of expanding commerce between our two countries. The study was recently completed and both the countries would examine the recommendations in the report and seek approvals before the end of October. CEPAs are very important tools to promote prosperity. In our experience, ten years after the implementation of a free trade agreement (FTA), trade flows more than double with our FTA partners. These gains in trade are twice as large as those with non-FTA countries. And, increased trade, of course, promotes efficiency, creates jobs, and helps create a more stable rules-based environment, within which businesses from countries can operate.
Now that a formal agreement on Canada-India civilian nuclear cooperation has been signed, what is next?
Harper and Singh witnessed the signing of the Canada-India Nuclear Cooperation Agreement, which will help facilitate cooperation in the peaceful use of nuclear energy, on June 27. The agreement must now be ratified. Both the countries are now working on the remaining steps necessary to ensure its early implementation. Canadian companies stand ready with a range of solutions to enable India in meeting its energy needs, from engineering services to uranium supply to safety assessments and licensing. As Canadian and Indian companies start working together in this sector, we may well see the same companies working together on nuclear energy projects in other parts of the world, too.
India has long been demanding a relaxation in visa norms from Canada. What is Canada doing in that regard, especially in the light of the recent controversy?
Every year, Canada welcomes about 131,000 Indian residents on both temporary and permanent bases, including individuals from the various Indian security forces. We are pleased to note that the number of Indian nationals travelling to Canada continues to increase. It is certain that a record high number of visas will be approved in 2010, especially for tourists, business travellers, students, and temporary workers. This is good news for both the countries. Canada has the highest regard for India’s democratic institutions and processes. Canada has great respect for India’s armed forces and related institutions. Canada values the increasing ties and cooperation with India in the fields of defence, security and counter-terrorism. The recent controversy relates to a very small number of applications, each with a specific circumstance. The admissibility policy within the legislation is under active review at present.
What is the status on the joint cooperation in the area of environment?
There is a high level of engagement between Canada and India on a range of environmental issues, through mechanisms including the Canada-India Environment Forum, the Canada-India Agreement for Science and Technology Cooperation and the Asia-Pacific Partnership on Clean Development and Climate. The Canada-India Environment Forum was established as a platform to discuss environmental issues and explore areas of bilateral cooperation. The first meeting of the forum was held in Ottawa in June 2009. Canada looks forward to building on this foundation at the next meeting of the environment forum, which, we anticipate, will be held in India in September 2010. The issues of energy and the environment go hand in hand — Canada and India signed a memorandum of understanding on Energy Cooperation during Harper’s visit to India in November 2009. To advance commitments under the bilateral Science and Technology Agreement, the Government of Canada provided $6.75 million over four years to support cooperative projects between Canada and India. Several of the joint priorities identified under this agreement relate to energy and environmental protection, including sustainable and alternative energy and environmental technology.
What is Canada’s stand with respect to the recent state of play in negotiations at WTO for a multilateral trade deal? Do you think it is still possible to meet the 2010 deadline?
Canada believes securing recovery from the global economic crisis requires us to keep our markets open and to take concrete measures to actively promote trade liberalisation. The best way to make a multilateral contribution to the economic recovery is by concluding the Doha Round of world trade talks. If countries fail to secure meaningful progress on trade liberalisation, this could threaten prospects for a sustainable global recovery. Whether or not it is still possible to meet the 2010 deadline depends on the willingness of WTO members to show flexibility to close remaining gaps. We must not underestimate the challenges and the difficult decisions that will be needed. We need to work hard to bridge gaps to arrive at a balanced conclusion of the Doha Round.
