India & Canada – Comprehensive Economic Partnership Agreement
Canadian companies are relatively small players in India, often lacking the scale to do business in such a large, complex and still highly protected market. Exports reached $3.1-billion in 2014, dominated by bulk commodities such as peas, lentils, fertilizer, canola oil and iron ore.
Arsha Consulting shares the latest updates on the Comprehensive Economic Partnership Agreement between both countries.
The negotiations for the free trade agreement, officially known as ‘Comprehensive Economic Partnership Agreement’ (CEPA), between the countries were launched in November, 2010. The proposed pact seeks to open services sector and facilitate investment proposals. As of end October 2015, India and Canada are closely working to finalize the agreement.
If a truly comprehensive CEPA is implemented, the Canadian sectors that would likely benefit the most, are natural resource industries and providers of high-value services. Consumers and businesses in both countries could enjoy more product variety and lower prices. Canadian companies would likely face adjustment challenges in some business services and in lower-wage, labour-intensive manufacturing.
According to Mr. Brian Parrott, Senior Trade Commissioner at The High Commission of Canada to India, "318 Canadian companies have their footprints in India and with increased globalization, Canadian companies' presence in India will multiply in due course of time, especially when India accepts the Canadian expertise and technological development in building for it a number of smart cities".
In order to gather inputs on trade in goods, trade in services, temporary entry and investment with regard to Canadian business activities in India, the Department of Foreign Affairs, Trade and Development Canada has launched a “Questionnaire on a Comprehensive Economic Partnership Agreement between Canada and India” for Canadian companies or associations doing or seeking to do business in India.
Laetitia Sieffert | Senior Consultant – International Trade