March 12, 2007
No. 39
The Honourable David Emerson, Minister of International Trade, today announced that
Canada and India have made significant progress toward finalizing a Foreign
Investment Protection and Promotion Agreement (FIPA) between the two countries.
Negotiations are nearing completion, and the Canadian and Indian governments have
agreed to increase efforts to finalize the agreement in the coming months.
Minister Emerson stressed his commitment to moving the Canada-India FIPA forward in
a telephone conversation with India's Minister of Commerce and Industry Kamal Nath
over the weekend.
“The Indian market offers tremendous opportunities for Canadian investors,” said
Minister Emerson. “Increasing two-way investment with India is a priority for this
government, and we are stepping up efforts to encourage more investment and further
stimulate trade flows between our two countries.”
Ted Menzies, Parliamentary Secretary to the Minister of International Trade, is currently
leading a Canadian trade mission to India on behalf of Minister Emerson from March 12
to 16, 2007. The mission, which includes stops in New Delhi, Hyderabad and Mumbai,
aims to strengthen Canada’s overall commercial relationship with India.
Once finalized, the Canada-India FIPA would provide added security and predictability
to the legal framework for foreign investment.
In 2005, Canadian direct investment in India was valued at $204 million, while India's
foreign direct investment in Canada reached $145 million (up 58 percent from the
previous year). Two-way merchandise trade between the two countries reached a
record $3.6 billion in 2006. The Government of Canada is committed to encouraging
increased two-way investment flows between India and Canada.
FIPAs are bilateral agreements that protect and promote foreign investment through
legally binding rights and obligations. They encourage two-way investment by providing
investors with the protection and predictability they need when investing in foreign
markets.
Two-way investment was underscored as a top priority in a keynote address delivered
by Mr. Menzies in New Delhi on behalf of Minister Emerson, available at
http://w01.international.gc.ca/minpub/Publication.aspx?isRedirect=True&publication_id=384938&language=E&docnumber=2007/9.
For more information on the Canadian trade mission to India, please visit
http://www.international.gc.ca/commerce/india/menu-en.asp.
- 30 -
For further information, media representatives may contact:
Jennifer Chiu
Press Secretary
Office of the Minister of International Trade and Minister for the Pacific Gateway and
the Vancouver-Whistler Olympics
613-371-1557
Trade Media Relations Office
Foreign Affairs and International Trade Canada
613-996-2000
http://www.international.gc.ca
