17 November 2009
New Delhi, IndiaMemorandum of Understanding to launch a Joint Study Group to formulate the parameters of a Comprehensive Economic Partnership Agreement (CEPA)
Canada and India agreed to initiate exploratory discussions toward a comprehensive economic partnership agreement (CEPA) in January 2009. The Government of Canada held initial public consultations from March to April to obtain advice and views on priorities, objectives and concerns of Canadians regarding this initiative. The next step is to begin a formal exploratory process with India through a Joint Study, which will examine key sectors of interest and the possible parameters of a comprehensive trade agreement between the two countries.
A high-quality CEPA that eliminates tariffs on most goods, opens up opportunities in services, establishes rules in investment and reduces non-tariff barriers could give Canadian exporters considerable preferential access to the large and growing Indian market, potentially ahead of other key competitors. A CEPA with India could deliver commercial benefits across many sectors of the Canadian economy including, among others, forest products, nickel, aircraft, electrical machinery, fish and seafood products and agricultural products.
The Joint Study Group, which will be comprised of officials from both Canada and India, is tasked with conducting the Joint Study. It will make recommendations, including on the potential launch of formal CEPA negotiations. The group is expected to finalize its report within six months.
Now one of the fastest-growing economies on the planet, India is projected to be the world’s third largest economy by 2050. India’s growing population, rising per capita income levels, rapidly expanding manufacturing, high-technology and services sectors as well as the associated infrastructure and natural resources requirements make it a tremendous market for Canadian companies.
Memorandum of Understanding on Cooperation in Energy
The Memorandum of Understanding on Cooperation in Energy with India establishes a Canada-India Forum on Energy. This will enable increased cooperation between the two countries on clean and renewable energy, energy efficiency, power generation, oil and gas exploration, research and development, energy policy discussions and other areas of mutual interest.
With a rapidly-growing economy, India plays a central role in the global resources market as a major consumer and importer of energy. In order to maintain its economic growth, India will need to more than double its electricity generation capacity in the next twenty years. Renewable energy sources (e.g., solar, wind, thermal, hydro) and nuclear power are expected to play an important role in India’s expanding growth.
Canada is a world leader in the production and use of energy from renewable resources. Our renewable energy industry is poised for spectacular growth, creating new opportunities for strategic partnerships and investments. Through the Government of Canada’s Economic Action Plan, the Clean Energy Fund is investing $1 billion over five years in research, development and demonstration projects to advance Canadian leadership in clean energy technologies.