Canada, India to finalise mutual investment pact
13 Mar 2007
Mumbai: Canada and India are in the process of finalising a mutual investment promotion pact. The Indo-Canadian Foreign Investment and Promotion Agreement (FIPA) is expected to be concluded in the coming months.
Canada''s minister of international trade, David Emerson reaffirmed his commitment to move the agreement forward in a telephone conversation with Union commerce and industry minister Kamal Nath over the weekend.
"The Indian market offers tremendous opportunities for Canadian investors," he said, adding the increasing two-way investment with India was a priority for Canadian government.
"Negotiations are nearing completion, and the Canadian and Indian governments have agreed to increase efforts to finalise the agreement in the coming months," Emerson said in a statement.
Efforts to encourage investment and stimulate trade flows between the two countries were also being stepped up, he said.
In 2005, Canadian direct investment in India was valued at $204 million, while India''s direct investment in Canada reached $145 million, up 58 per cent from the previous year.
In fact, Canada wants India to consider a free-trade agreement between the two countries if global trade talks continue to falter, reports quoting a Canadian lawmaker said.
With the Doha Round talks of the World Trade Organisation aimed at lowering tariffs worldwide stalled because of disputes over farm subsidies, Canada said it would seek out bilateral or regional agreements in Asia if discussions fail.
"Depending on the outcome of the Doha round, we will assess the next steps for meaningful trade liberalization between our two countries," Ted Menzies, parliamentary secretary to the minister of international trade, said in a speech in New Delhi.
