Backgrounder

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Canada and India: Toward a Comprehensive Economic Partnership Agreement

November 12, 2010
Seoul, Korea

India is projected to be the world's third largest economy by 2050 and is a priority market for Canada.

With a view to enhancing bilateral trade relations, Canada and India agreed to initiate exploratory discussions toward a Comprehensive Economic Partnership Agreement during a visit to India in January 2009 by Canada's Minister of International Trade.

In November 2009, a Joint Study Group comprised of Canadian and Indian officials was established and tasked with examining the feasibility of such an agreement.

The Government of Canada, with the publication of a notice in the Canada Gazette on March 8, 2009, held initial public consultations to obtain the advice and views of Canadians regarding this initiative.

The Joint Study Group completed its work in June 2010. The findings outlined parameters for the negotiation of an ambitious and comprehensive trade agreement between Canada and India, and described the substantial gains to be made from eliminating trade barriers between Canada and India.

On November 12, 2010, Prime Minister Stephen Harper and Manmohan Singh announced the launch of negotiations on a Comprehensive Economic Partnership Agreement.

A Canada-India joint study estimated that an agreement could increase GDP in each country by approximately $6 billion and increase our two-way bilateral trade by 50 per cent. A free trade agreement with India stands to benefit a wide range of Canadian exports sectors such as forest products, minerals, manufactured goods, agricultural products, fish and seafood products, machinery, construction materials and equipment, aerospace, and environmental technologies.

An agreement could also benefit Canadian service providers, particularly in sectors such as energy services, mining, environmental services, engineering and financial services. Canadian life sciences and biotechnology, and information communication technologies businesses also stand to leverage their expertise in this key market and increase their exports to India.

The Joint Study findings are available on the Foreign Affairs and International Trade web site at http://www.international.gc.ca/trade-agreements-accords-commerciaux/

Canada-India Commercial Relations:

Bilateral merchandise trade with India totaled $4.2 billion in 2009, an increase of 70.2 per cent from 2004, with exports increasing by 149.3 per cent over the same period. In 2009, Canada's main export products were vegetables, fertilizers, machinery and wood pulp.

Imports from India for the same year were valued at $2.0 billion and consisted principally of organic chemicals, knit apparel, woven apparel, precious stones and metals, and electrical and electronic equipment and machinery.

According to Statistics Canada, two-way foreign direct investment between Canada and India reached record levels in 2009, standing at $3.6 billion. The stock of Indian foreign direct investment in Canada totalled nearly $3 billion. Recent major investments by Indian companies in Canada could increase this figure. The stock of Canadian foreign direct investment in India stood at $601 million in 2009.

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The Prime Minister's Office - Communications
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News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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PM launches trade negotiations with India

November 12, 2010
Seoul, Korea

Prime Minister Stephen Harper and Prime Minister Manmohan Singh of India today announced the beginning of negotiations for a Comprehensive Economic Partnership Agreement between Canada and India.

"Our Government is committed to opening new markets for Canadian goods and services," said Prime Minister Harper. "Today, I am pleased to announce that we have taken another step on that path by launching trade negotiations with India."

A Canada-India joint study estimated that an agreement could increase GDP in each country by approximately $6 billion and increase our two-way bilateral trade by 50 per cent. An agreement with India stands to benefit a wide range of Canadian exports sectors such as forest products, minerals, manufactured goods, agricultural products, fish and seafood products, machinery, construction materials and equipment, aerospace, and environmental technologies.

An agreement could also benefit Canadian service providers, particularly in sectors such as energy services, mining, environmental services, engineering and financial services. Canadian life sciences and biotechnology, and information communication technologies businesses also stand to leverage their expertise in this key market and increase their exports to India.

"Canada's vibrant, 1 million strong, Indo-Canadian community helps promote trade and investment between our two countries," added Prime Minister Harper. "These people-to-people ties can only be enhanced by a new Canada-India agreement on trade."

Officials will meet in the coming days to begin the negotiating process. Both sides expect a timely conclusion of an ambitious agreement.

The findings of the joint study are available on the Foreign Affairs and International Trade web site at http://www.international.gc.ca/trade-agreements-accords-commerciaux/

Since 2006, our Government has signed and implemented new trade agreements with eight countries and we are currently in negotiations with close to 50 others around the world.

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The Prime Minister's Office - Communications
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News Release

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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PM congratulates winners of the Small and Medium-Sized Enterprise Finance Challenge

November 12, 2010
Seoul, Korea

Prime Minister Stephen Harper today congratulated the 14 winners of the G-20's Small and Medium-Sized Enterprise Finance Challenge, including Canadians Scott Gilmore and Bailey Klinger.

G-20 Leaders launched the Small and Medium-Sized Enterprise Finance Challenge at the Toronto Summit in June 2010 to seek private sector ideas on how governments and public institutions can be more effective in helping small and medium-sized enterprises obtain private financing.

"It is with great pride that I congratulate Scott Gilmore, Bailey Klinger and all their fellow winners on the impressive achievements and innovations," said Prime Minister Harper. "These individuals are a testament to what the international community can accomplish when they work together towards a common goal."

Mr. Gilmore is the founder and Executive Director of the Peace Dividend Trust, a non-profit organization that finds, tests and promotes new ideas for improving peace and humanitarian operations. His winning model for the Small and Medium-Sized Enterprise Finance Challenge will provide loan guarantees to local small and medium-sized enterprises in developing countries, based on the merits of the international procurement contracts they have won. These loan guarantees will stimulate economic growth and job creation in post-conflict and post-disaster economies by ensuring that local companies have equal access to international contracts.

Mr. Klinger is co-founder and Director of the Entrepreneurial Finance Lab, and a fellow at Harvard's Center for International Development. His winning proposal addresses the problem banks face in identifying potential small and medium-sized enterprise borrowers who do not have collateral or a credit history. Using tools to evaluate credit risk and potential for repayment, banks will have the information necessary to lend to high potential small and medium-sized enterprises, thereby increasing the number of enterprises with access to loans.

The Small and Medium-Sized Enterprise Finance Challenge, which is funded by the Rockefeller Foundation and run by Ashoka's Changemakers, used the G-20's reach and convening power to find the best models from around the world. Response to the Challenge was very strong, with 354 entries received.

The G-20 has committed to mobilizing funding necessary to implement winning models of the Small and Medium-Sized Enterprise Finance Challenge, including through a newly created innovation fund that will be administered by the International Finance Corporation of the World Bank. The Government of Canada will provide $20 million to the fund.

For information on the winners of the Small and Medium-Sized Enterprise Finance Challenge and their projects, visit www.changemakers.com/SME-Finance.

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The Prime Minister's Office - Communications
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