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Indo-Canada Chamber of Commerce

   
e-Newsletter
January 2018
 
           
 Business Snippets
 

Trade between India and Canada up by 30%: Canadian envoy

Highlighting on bilateral co-operation to promote and foster trade and multilateral relations between Canada and India, its envoy to India said trade between the two countries was up by 30 per cent. High Commissioner Nadir Patel was speaking at an event where an MoU was signed between the Indian Chamber of Commerce (ICC) and the Indo Canadian Business Chamber (ICBC) in order to further enhance bilateral co-operation to promote and foster trade and multilateral relations.

Patel said that bilateral relation is booming with two-way trade up by 30 per cent. Canadian investment in India has also exceeded by $15 billion. While there are about 400 active Canadian companies in India, many more have serious plans of investing in India, he said. While three non-stop flights are already plying between India and Canada, there has been a major boost to tourism and educational ties between the two countries, he said. Patel also indicated that West Bengal has enormous potential for Canadian companies who are already operating in India and also for such companies who would like to set up base in India.

Canadian equity investments in India top US$20 billion over past decade

Canadian funds / firms have pumped in a full USD 20 billion into the country, mostly by way of equity funds over the past decade alone, while bilateral trade is clipping at 30 per cent, and both are going to get a fillip with the new bilateral pact, says a Canadian diplomat.

Fund inflows are set for acceleration with the signing of the much-awaited Foreign Investment Promotion and Protection Agreement (FIPA) by the two nations which will further boost investor investment, Canadian Consul General in Mumbai Jordan Reeves said.

“Canada’s investments in India have touched USD 20 billion by way of equity funds in a short span of 10 years. Several pension funds and institutional investors are looking at more investment opportunities here, including on project financing,” Reeves said.

Addressing an interactive meeting with businessmen and a 25-member visiting Canadian business delegation here, Reeves said with the increased focus on multiple sectors bilateral trade will spike up. He said with the FIPA and on conclusion of the ongoing free trade agreement (FTA) talks there is no looking back on investments and trade opportunities.

“Bilateral trade is currently estimated at USD 8 billion and we expect it to touch USD 16 billion by 2020 and Canada can provide its advanced technology in advance manufacturing, clean technology, infrastructure sectors as well as education and tourism sectors,” Indo-Canada Chamber of Commerce president Kanwar Dhanjal said, adding trade is growing at 30 per cent annum.

Justin Trudeau may visit India in February

Canadian Prime Minister Justin Trudeau’s expected forthcoming visit in February is expected to boost bilateral partnership in many sectors.

Nearly 1,000 Canadian companies, which include Fairfax Financial promoted by NRI Prem Watsa, Brookfield, Bombardier, CGI Montreal, McCain Foods, Sun Life Financial, Amdocs, and Bank of Nova Scotia, are already doing business here while several domestic companies such as TCS, Infosys, SBI, ICICI Bank, Wipro, Tech Mahindra, Aditya Birla Group, and Essar Steel are active in Canada.

Exports to Canada is estimated at USD 2 billion which includes gems, jewellery and precious stones, pharma, readymades, textiles, organic chemicals, light engineering goods, and iron and steel articles, while imports include pluses, newsprint, wood pulps, asbestos, potash, iron scraps, copper, minerals and industrial chemicals worth USD 4.13 billion. The FIPA will provide greater predictability for and certainty to Canadian investors, Dhanjal said, adding there is tremendous opportunities to work in the areas of energy, renewable energy and solar. Having the third largest crude oil reserves in the world along with large gas reserves, Canada is looking forward for Indians to partners in these areas.

Canada takes U.S. to WTO in wide-ranging trade complaint

Case cites almost 200 examples of U.S. wrongdoing, many concerning other trading partners. Canada has launched a wide-ranging trade dispute against the United States, challenging Washington's use of anti-dumping and anti-subsidy duties, according to a World Trade Organization filing dated Dec. 20.

Canada appeared to be mounting a case on behalf of the rest of the world, since it cited almost 200 examples of alleged U.S. wrongdoing, almost all of them concerning other trading partners, such as China, India, Brazil and the European Union.

The 32-page complaint homed in on technical details of the U.S. trade rulebook, ranging from the U.S. treatment of export controls to the use of retroactive duties and split decisions by the six-member U.S. International Trade Commission.

Canadian Foreign Minister Chrystia Freeland said the legal action was in response to the "unfair and unwarranted" U.S. duties against Canada's softwood lumber producers and part of a "broader litigation" to defend forestry jobs.

"We continue to engage our American counterparts to encourage them to come to a durable negotiated agreement on softwood lumber," Freeland said in an emailed statement.

Canada said U.S. procedures broke the WTO's Anti-Dumping Agreement, the Agreement on Subsidies and Countervailing Measures, the General Agreement on Tariffs and Trade, and the Understanding on Rules and Procedures Governing the Settlement of Disputes.


 
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