India: A huge trade opportunity for Canada

The Canadian Minister for International Trade Stockwell Day, who is currently in India, inaugurated a new Canadian trade office in Hyderabad on Wednesday.

"This new office will give Canadian companies another competitive edge in a highly sought-after market," he said. 

"India is a dynamic, rapidly growing market that represents a huge opportunity for Canadian goods, services and technology," he added.

Canada already has trade offices in New Delhi, Mumbai, Kolkata, Bangalore, Chennai and Chandigarh. 

"This new office will provide market intelligence and expert advice to help  Canadian companies take advantage of trade and investment opportunities," Day said.

He said another trade office will be opened in Ahmedabad in April.   The trade offices, fulfill the commitment made by Prime Minister Stephen Harper last April in Toronto. 

Canada now has seven trade offices in India, making Canada's network of trade offices in India its largest outside the United States.

The government of Canada has identified India as a priority market under the Global Commerce Strategy, which provides $50 million per year to further develop Canada's trade and investment interests at home and abroad.

During his meeting with Commerce Minister Kamal Nath, they agreed "now is the time to instruct our officials to begin to look at the broader economic relationship and we are looking at all components," Day said.

This decision was taken in regard to the two countries pursuing the proposed free trade negotiations, "We are looking at trade and we have Science and Technology Agreement that we have already signed.  There are possibilities on research and development side," he said. 

Canada is taking a broad multi-level approach. "The bottom line is as discussions move along (for a free trade agreement); one step at a time, there will be an increase in economic activities.  There will be an increase in academic

activities and also at the level of scientific research and development," he pointed out.

Canadian and Indian CEOs, Thomas d'Aquino and Tarun Das have already submitted their draft proposals on the FTA to the two governments. 

The CEOs on both sides 'believe that the scope to conduct business bilaterally is limitless and that the time to engage is now.  The products and services that Canada and India produce and what each country needs are complimentary," the CEOs said in their draft proposals. 

"A more aggressive but strategic approach to the bilateral relationship is needed to produce benefits for both India and Canada in the form of new markets for goods and services, opportunities for investment and stronger economic growth," they said.

It is suggested in their draft report that 'pursuit of deeper commercial relations would result in greater competitiveness and prosperity for Canada and India.'

The Canada-India commercial relations are growing and diversifying. In 2007, two-way merchandise trade increased four percent to an all-time high of $3.74 billion and two-way direct investment reached $652 million, says Canadian Department of international Trade.

There are market opportunities for Canadian companies in agriculture and agri-food, service industries, infrastructure, information and communications technology, oil and gas, electrical power and the aerospace and defense sectors.

"Canadian businesses have been asking us to increase our Canadian Trade Commissioner Service presence abroad, and today is one more concrete example of how our government is helping those businesses expand their horizons," Day said.

Photographs: Canadian Ministry for Foreign Affairs and International Trade