On 8th May 2023, Piyush Goyal, Union Minister of Commerce & Industry, co-chaired the 6th India-Canada Ministerial Dialogue on Trade and Investment (MDTI) along with Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, Government of Canada, in Ottawa, Canada.
- During the meeting, the Ministers highlighted the trade and economic relationship between Canada and India and recognised the significant opportunity to deepen bilateral ties and economic partnership.
6th India-Canadda MDTI
6th India-Canada MDTI was focused on various themes such as strengthening the Bilateral Trade Relationship between India and Canada, Investment Promotion and Cooperation, Green Transition including Critical Minerals discussion and New Areas of Cooperation such as promoting B2B (Business-to-Business) engagements.
Note: MDTI is a bilateral mechanism that offers an institutional framework to discuss a wide range of trade and investment-related issues and cooperation areas.
i.In 2022, the India-Canada bilateral trade in goods reached about USD 8.2 billion, registering a 25% growth compared to 2021.
ii.The ministers also highlighted the contribution of the services sector in furthering the bilateral relationship and noted the significant potential for increasing bilateral services trade which stood at about USD 6.6 billion in 2022.
iii.During the meeting, the ministers also emphasised on enhancing cooperation in sectors such as clean technologies for infrastructure development, critical minerals, electric vehicles and batteries, renewable energy/hydrogen, and Artificial Intelligence (AI).
iv.They also reviewed the progress so far achieved in the India-Canada Free Trade Agreement negotiations in the seven rounds of negotiations so far.
v.They reaffirmed that Early Progress Trade Agreement (EPTA) would cover, among others, high-level commitments in goods, services, investment, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement and it may also cover others where mutual agreement is reached.
- The EPTA is one of the important steps towards the Comprehensive Economic Partnership Agreement (CEPA).
CEPA was launched in 2009 to promote bilateral trade and investment by eliminating or reducing tariffs on goods and services traded between India and Canada.
- The agreement covers a wide range of sectors, including agriculture, manufacturing, services, and intellectual property.
Outcomes of 6th India-Canada MDTI:
i.India and Canada agreed to explore cooperation through measures such as coordinated investment promotion, information exchange and mutual support through a Memorandum of Understanding (MoU) preferably by September-October 2023.
ii.They also agreed on the importance of Government to Government (G2G) coordination to promote critical mineral supply chain resiliency and committed to an annual dialogue at the official level on the margins of the Prospectors and Developers Association Conference (PDAC) in Toronto (Canada).
iii.The ministers also agreed to rework and relaunch the Canada-India CEO (Chief Executive Officer) Forum with focus and a new set of priorities
- This CEO forum will be a platform to enhance B2B engagement.
iv.Minister Mary Ng will lead a Team Canada trade mission to India in October 2023. This will provide an opportunity to deepen the trade and investment ties between India and Canada.
v.They also noted the aspiration for an enhanced discussion related to migration and mobility.
vi.They also discussed appropriate mechanisms to discuss talent and innovation partnerships to strengthen the bilateral innovation ecosystem.
Other Highlights of the Minister’s Visit:
i.Union Minister Piyush Goyal visited Toronto, Canada from 9th to 10th May 2023 and participated in various events to promote trade and investment.
- During his visit, he participated in several engagements including a meeting with CEOs of key Canadian companies, a Round Table of Indian and Canadian CEOs, interaction with Canadian and Indian companies based in Canada and a Financial Sector Round table.
ii.He was accompanied by a delegation of Indian CEOs led by the Federation of Indian Chambers of Commerce & Industry (FICCI).
iii.He also inaugurated the Indian Pavilion at SIAL CANADA-2023, The largest food innovation trade show in North America. Around 1000 national & international exhibitors from 50 countries participated in the show.
- Indian business participation consists of a delegation from the Trade Promotion Council of India (TPCI), Agricultural & Processed Food Products Export Development Authority (APEDA), India Trade Promotion Organisation (ITPO) and Associated Chambers of Commerce and Industry of India (ASSOCHAM).
CII Report: Indian companies invested CAD 6.6 billion in Canada creating 17k jobs
According to the report titled “From India to Canada: Economic Impact and Engagement” 30 Indian companies have invested more than 6.6 billion Canadian dollars (CAD) in Canada creating 17000 jobs across 8 provinces of Canada. These companies have also spent over CAD 700 million in research and development (R&D) expenditures.
- The report was prepared by the Confederation of Indian Industry(CII) in partnership with Canada – India Business Council(C-IBC) and India’s High Commission in Ottawa(Canada).
- The report was released by Union Commerce and Industry Minister Piyush Goyal and his Canadian counterpart Mary Ng at the reception organised by C-IBC in Toronto.
This report is the first of its kind that captures the growing presence of Indian Industry in Canada in order to highlight the contributions of Indian companies to the competitiveness of the Canadian economy in the form of foreign direct investment (FDI), jobs created and saved, and funding for R&D as well as local corporate social responsibility initiatives.
i.According to the report, 100% of participating companies plan to invest more in Canada in the next five years, and 96% plan to hire more employees.
ii.Around 32% of the companies accounted for technology services while the manufacturing and engineering and life sciences, pharmaceuticals and healthcare comprised 25% each.
iii.The report demonstrates how Indian companies across Canada are expanding their investments, creating jobs, funding research and development initiatives, and supporting their communities through corporate social responsibility programmes.
Prime Minister– Justin Trudeau
Currency– Canadian Dollar (CAD)
About the Ministry of Commerce and Industry:
Union Minister– Piyush Goyal (Rajya Sabha- Maharashtra)
Minister of State– Som Parkash (Constituency- Hoshiarpur, Punjab); Anupriya Singh Patel (Constituency- Mirzapur, Uttar Pradesh)