Introduction
The need for cooperation between India and Canada was first raised at the dawn of 2005. The two needed to cooperate in the areas of trade and economy. In addition to these, the two countries’ prime ministers met to address the issue of the prevailing challenges facing the two countries, which could in turn bar this cooperation. As a result, they agreed on a need for a CEO Roundtable, whose major task was to point out the criteria behind their collaboration. Two meetings took place in 2007, with the first one pointing out the relevant guidelines which once implemented would, not only foster their trade growth and relationship, but also improve their current trade policies.
The second Roundtable focused on the need for promoting their investments where the issue of the possibility of improving their private sector was raised. Moreover, these two Roundtables welcomed advices from other business people, aimed at realizing the long awaited free trade agreement. Following the two Roundtables, the subject of the two countries’ bilateral trade is being examined with different views being put across. Some complimentary economic conditions make the two countries mutually beneficial trade partners as illustrated below.
India-Canada Cooperation
According to the India-Canada Roundtable (2008), “The products and services that Canada and India produce and what each country needs are complementary” (p. 4). This is root condition making the two mutually benefit as trade partners. For instance, while Canada exports pulp and paper, among others, to India, it receives textiles and apparel in return. In addition, the well developed link developed by the Indo-Canadian society provides a further condition for their mutual benefit in trade. In addition, India relies on the strength of the middle class, knowledgeable and trained workers, whose major language is English.
Canada, on the other hand, has all these qualifications and thus has all the opportunities for its firms. Moreover, the large and expanding Indian economy, which differs from that of Canada, creates an opportunity for Canadian businesses since the Canadians have what the Indians require for their economic growth. It stands out that, what India requires can be effectively offered by Canada and vice versa. Therefore, this exchange makes the two mutually benefit as trade partners.
On the line of the status quo of bilateral trade between the two, India, the 14th largest market world-wide registered a GDP of US$821 billion in 2006 with its corresponding partner, Canada registering US$430 billion in 2007. India is by far more populated than Canada, almost 30 times. It registered a 14.2 % increment of per capita income during the 2006-7 economic periods. “India’s exports to Canada have grown at a rate of about 10 percent per year, over the past several years” (India-Canada Roundtable, 2008, p. 7). On the other hand, Canada’s GDP per capita is higher than India’s.
According to the Canada- India Roundtable, Canada is showing a declining growth of economy. Addressing the issue of trends, India depicts a positive gradient of 9 % each year within a range of three years, and hence expanding, while Canada depicts a negative one and hence declining, as a result of the evident challenges ranging from its appreciating coinage in relation to the others, to the high costs of merchandise. Concerning the India-Canada good/service trade and investments, the Roundtable raised some appropriate discourses as expounded next.
Basing on the India-Canada trade in goods, the Roundtable participants agreed on tariff elimination establishing some working principles towards the agreement. Among these was the abolition of duties on non-agricultural goods which could favor both countries. In addition, they addressed the need for a conflict-solution criterion that could reduce the number of the experienced daily commercial disputes. On the issue of trade in services, the meeting showed a need for a direct investment aimed at improving India’s services like infrastructure, telecommunications, among other services. Concerning investments, the Roundtable (2008) “…welcomed the conclusion of negotiations toward a Foreign Investment Protection and Promotion Agreement” (p. 10). These Roundtable participants also highlighted the need for a better spotlight on the area of investment.
From a political point of view, the governments of the both countries can facilitate bilateral business through various ways. According to the Roundtable participants in 2008, “The robustness of our relationship will depend in large measure on the commitment of our respective leaders in the political, business, and non government communities” (p. 3). This call for commitment of the political leaders of both countries if at all trade between the two countries has to be maximized. In addition, a pronounced activity and support from political leaders, specifically the prime ministers, can help facilitate the trade in question. Besides, bilateral trade cooperation between India and Canada, the Roundtable raised some other new areas of cooperation.
Conclusion
In conclusion, new areas of discussions were put across in the meeting. Among these areas is the field of competition where views, targeted at accrediting the shared principles, were raised. The area of intellectual property rights was also raised whereby the two agreed to fully support and protect the rights. In addition, another area that came handy in the discussion was that of totalization as well as tourism. The discussions on these, among other areas, are only meant to foster India-Canada cooperation.
Reference List
India-Canada CEO Roundtable. (2008). India and Canada: A New Era of Cooperation.