Trade ties to strengthen between India and Canada

Category: WTO Sub-category: Trade Agreements
Document type: news

28-Jun-2011 | 17:45 IST | Edited by: Vishal Bagaria

The Canadian and Indian governments and commercial sectors resolved to fortify trade relations to achieve a target of bilateral trade reaching $15 billion by 2016, from a current $5 billion.

New business opportunities and partnerships in sectors such as clean technology, higher education, media and entertainment, and tourism are being promised by Canada. A Comprehensive Economic Partnership Agreement (CEPA), is already being negotiated upon, to enhance two-way trade and investments.

Apart from negotiating the free trade agreement, agreements like the audio-video co-production treaty, social security agreement and foreign investment promotion and protection agreements are also being considered and worked upon. Canadian market is a huge gateway for entry into the American market. Strong political and commercial alliances with Canada and America, will prove to be a boon to the developing Indian economy in many ways. New business opportunities shall emerge as part of alliances, joint ventures, mergers etc. among domestic firms of each country.

For tourism development, Air Canada plans to launch a direct flight linking key Indian destinations. Air capacity for one-stop flights between India and Canada has increased 17.5% in 2008 and 35% in 2009 over the previous years.

India, on the other hand, is also looking forward to attract more Canadian toursits to India. Canada is placed among the top five source countries for foreign tourists in India with a share of about 5, and given the fastening trade bonds, this has a long way to go. Moreover, Canada has become a popular destination for Indian tourists. As part of its initiatives, Canada has already announced a 10-year multiple entry visa for frequent travellers from India.

Moreover, Canada seeks to promote the biggest industry of India - Bollywood - by playing host to the 12th International Indian Film Academy Awards (IIFA), and also encouraging film-makers to choose Canada as a perfect shooting destination. Film-makers shall be given encouragement for easier access to shoot their movies in Canada, as per the negotiations on the audio video co-production treaty. Outsourcing of Indian animation experts will also be a part of this effort. We have seen Fox Star Studios co-produce Karan Johar's movie, My Name is Khan, in early 2010. The government of Ontario has a budget of $12 million for hosting the IIFA weekend at Toronto wtih a viewership of 700 million on television.

Strengthening trade ties, is a indeed strategic development effort for India.

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International Indian Film Academy Awards, also known as the IIFA Awards are presented annually by the International Indian Film Academy to honour both artistic and technical excellence of professionals in Bollywood, the Hindi language film industry. Instituted in 2000, the ceremony is held in different countries around the world every year.

See Also Canadas' Universities build a passage from India: In Canada's attempts to reach around the world to build ties to emerging powers, one of the most important initiatives is coming from Canadian universities lured by the pot of gold in India's millions of bright young students.