Canada takes another step to strengthen bonds with India
PORT OF SPAIN, TRINIDAD AND TOBAGO – Prime Minister Stephen Harper today announced that Canada and India have concluded negotiations on a nuclear cooperation agreement. The Prime Minister made the announcement during a meeting with Dr. Manmohan Singh, Prime Minister of India, on the margins of the 2009 Commonwealth Heads of Government Meeting.
“This agreement is a testimony to the undeniable potential that Canada and India can offer each other and the world,” said the Prime Minister. “Increased collaboration with India’s civilian nuclear energy market will allow Canadian companies to benefit from greater access to one of the world’s largest and fastest expanding economies.”
Canada and India will now take the necessary steps to prepare the agreement for final signature and implementation.
“Canada is committed to forging stronger trade, investment and educational ties with India,” added the Prime Minister. “This agreement will allow Canadian firms to export and import controlled nuclear materials, equipment and technology to and from India.”
The Government of Canada has made a nuclear cooperation agreement with India a priority. Canada’s nuclear-energy industry generates approximately $6.6 billion in annual revenue, $1.2 billion in exports each year and employs approximately 31,000 people.
Backgrounder
CANADA-INDIA NUCLEAR COOPERATION AGREEMENT
This agreement will allow Canadian firms to export and import controlled nuclear materials, equipment and technology to and from India, while ensuring that Canadian supplied goods and technology are used for peaceful, civilian purposes.
It will allow Canadian companies to offer a full array of equipment, services and uranium supply to the Indian civilian nuclear market.
Over the next 20 years, India’s civilian nuclear energy market is expected to be worth anywhere from $25 billion to $50 billion.
India and Canada are natural partners in the joint promotion and development of heavy water technology reactors. There are a number of opportunities to work together as strategic partners in global markets. Canada is a supplier of both nuclear technology and uranium fuel that can help India to meet its growing energy needs.
Market opportunities for Canada would exist in all key sub-sectors and exports could range from engineering services, design and construction of plants and subsystems, balance of plants, uranium supply, mining, to safety assessments and licensing.
Backgrounder
CANADA AND INDIA
Canada and India have a relationship based on shared values of democracy and pluralism and a mutual interest in expanding trade.
The Government of Canada has made India a key priority. India’s growing population, rising per capita income levels, rapidly expanding manufacturing and services sectors, and its associated infrastructure and natural resources requirements make it a tremendous market of opportunity for Canadian exporters and investors. India continues to be one of the fastest growing economies in the world and has the potential to become the second largest global economy by 2050. All of these factors demonstrate considerable potential for both countries.
The Prime Minister’s visit in November marked the transformation of this relationship into a more strategic partnership. Both Canada and India have invested heavily in recent years in building institutional linkages and engaging at senior levels in various key areas. Since 2006, Canadian ministers have visited India on 11 occasions, leading trade missions and initiating bilateral agreements. Canada has also opened three new trade offices.
Canada is consolidating and strengthening its engagement with India to increase bilateral collaboration in a number of areas of mutual priority including education, energy, civil nuclear cooperation, counterterrorism, science and technology, culture, agriculture and mining. Canada’s commitment to regional stability in Afghanistan, to which India also contributes through its large assistance program, remains a shared interest.
The case for stronger relations between Canada and India is firmly rooted in both of our histories: parliamentary democracies, federalist systems, legal codes, and the use of the English language. Pluralism – the rich pattern of regional, ethnic, religious and cultural diversity – unites us at an even deeper level.
The Indo-Canadian community is approximately one million strong and makes significant contributions to the strength of Canada’s economy. Our substantial immigration program in India is vital to finding productive new Canadians. The annual flow of some 25,000 immigrants from India continues to strengthen our communities and foster personal and professional ties between the two countries. Indo-Canadians form a solid foundation for relationships at all levels between India and Canada. We are building more and new forms of links between higher education and research institutes, attracting students and building bridges to the future leadership communities in both countries.
India’s role and responsibility as a major actor on the world stage continues to grow. As host of the G-20 in June 2010, Canada is working with India to ensure a durable recovery and to develop growth models that benefit both countries.
Trade and Investment
At nearly $5 billion in 2008, bilateral trade has reached record levels. Canada believes that more can be done to capitalize on additional trade and investment opportunities between our countries. Canadian exports to India increased 35 per cent from 2007 to 2008, and even through the recent economic downturn, exports to India were up three per cent. Canada aims to more than double its bilateral trade with India over the next five years to $10 billion.
In 2008, two-way direct investment reached $1.8 billion. Canadian direct investment into India, at $801 million, was up 25 percent from 2007. Indian direct investment into Canada totalled $1.02 billion in 2008, an increase of almost 150 per cent over 2007.
As the world’s largest democracy, India has impressive human capital and enormous capacity in the realms of science, technology and innovation. Our bilateral Science and Technology Agreement, which funds joint scientific cooperation, has proven very successful. This same human capital produces a thirst for knowledge and education partnerships that can be satisfied here in Canada.
Tourism is also an area for potential growth. Canada received more than 110,000 visitors from India in 2008, up nine per cent over 2007, and experienced five consecutive years of continuous growth since 2003. Since 1996, overnight travel from India to Canada has grown 87 per cent. Business trips from India increased almost three per cent in 2008 over 2007, and 123 per cent since 1996. In 2008, visitors from India spent an estimated $95 million in Canada.
On November 17, Prime Minister Harper and India’s Prime Minister Dr. Manmohan Singh witnessed the signing of two agreements:
- A Memorandum of Understanding to launch a Joint Study Group to formulate the parameters of a Comprehensive Economic Partnership Agreement (CEPA). This agreement would 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.
- A Memorandum of Understanding on Energy Cooperation, fostering increased cooperation on clean and renewable energy, energy efficiency, power generation, oil and gas exploration, research and development, energy policy and other areas of mutual interest. It also will support key priorities for the Government of Canada in developing a clean energy economy and expanding international trade.
Canada and India have concluded negotiations on a Nuclear Cooperation Agreement. This would open up the civil nuclear market in India to Canadian companies while ensuring that Canadian supplied goods and technology are used for peaceful, civilian purposes.
