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'India has to be more open to attract business'

Ajit Jain
India Abroad Correspondent in Toronto

Indo-Canadian bilateral trade at a current level of Canadian $1.7 billion is only a fraction of what it should be, said James Junke, director of South Asia, Canadian Department of foreign Affairs.

Canada's trade with China is ten times as much, he informed.

When Canadian Prime Minister Jean Chretien went to India in January 1996, he indicated that trade between the two countries would quadruple soon, but the actual numbers belie that optimism.

Canadian exports last year to India totaled only $500 million, the same as in 1985. The stagnated Canadian exports to India have been attributed to two factors: the strained relations between the two countries resulting from India's nuclear test in May 1998, and the perception that 'India has a closed market'.

In an exclusive interview, he said that the Canadian government is 'working on the issue of market access'.

Canadian businessmen first go to the United States. To them India is like 180 other countries that are trying to attract business persons and investment' and so Junke suggested 'India has to be more open to attract businesses'.

In any case, Canada is excited about growth in Indian economy and opportunities that it offers.

"We are trying to look at the region of South Asia as a whole," he said.

Canada's efforts are to 're-engage' with the region as a whole, Junke explained. "We are trying to have proper political engagement with Pakistan," he said.

Pakistan's Foreign Minister Abdul Sattar was in Ottawa recently. He was clearly told by his Canadian counterpart John Manley that they have to announce a specific timetable for the next federal and provincial elections before Canada could discuss re-engagement with his country.

"India-Pakistan relations are essential and so we are delighted that Vajpayee and Musharraf will meet this month. We welcome this summit. We welcome this development," Junke said.

India and Pakistan "have to resolve their disagreements through ongoing dialogues as it is not for us to say what the solutions are. We simply say dialogues are important whether on Kashmir or any other bilateral issues," he said.

When asked about $6-billion worth of MoUs that were signed in the presence of Chretien in January 1996, Junke said: "We will re-examine all of those. We will decide what our bilateral relationship should be on the economic, political and cultural fronts.

"I hope we will sustain the new level of activities as India is just too important to the world," he concluded.

Finance Minister Paul Martin is going to India in November to attend G-20 meeting and he may take a business delegation with him depending on the advice he gets from International Trade Minister Pierre Pettigrew who will be in India between October 8 and October 12, Junke said.

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