Canada must show leadership if its dream of comprehensive free trade with India has any hope of coming true.
Free trade with India long-term plan (by Les Whittington, Toronto Star, March 14/07) reports that Canadian Trade Minister's parliamentary secretary gave a speech in New Delhi declaring Canada's long-term vision of an unfettered free-trade deal with India.
Recently, India's trade barriers have been loosened as the world's twelfth largest economy transforms into an international trade superpower. For its part, Canada's record in implementing free trade deals has been poor.
So while it was disappointing, it wasn't a complete surprise when Canada's parliamentary secretary, Ted Menzies, told reporters that he only "wanted to put it out there" that Canada has a long-term strategy for full free-trade with India.
Menzies hopes that Canada and India can sign a foreign investment & protection agreement (FIPA) by year-end. Such an agreement will stimulate investment flows between the two countries.
In 2006, imports and exports between Canada and India amounted to US$3.1 billion. Vast opportunities exist to build on that trade relationship.
Canada is currently focused on India's information technology, life sciences and mining sectors. Canada brings much expertise and resources to the table, particularly for India's infrastructure including roads, bridges and sewers.
Enough talk. Enough speeches.
Here's hoping that Canada can develop a detailed, clear action plan that organizes, quantifies and prioritizes what Canada can offer India in a mutually beneficial trade relationship.
