Canada, India back the start of talks on trade deal
Reuters
Canada, India back the start of talks on trade deal
24 September 2010
* Canada, India aim to increase trade to C$15 bln annually
* Trade agreement could boost Canada GDP by up to $15 bln
* Deal could boost India annual GDP by up to $12 bln
* No date set for formal negotiations (In U.S. dollars unless noted)
TORONTO, Sept 24 (Reuters) - Canada and India said on Friday they have endorsed the findings of a joint study calling for negotiations to begin on reaching a "substantive and ambitious" bilateral free trade agreement.
Canadian Trade Minister Peter Van Loan said a free trade agreement with India would help the two countries meet their goal of increasing bilateral trade to C$15 billion ($14.6 billion) annually within the next five years. Last year Canada-India trade was worth C$4.2 billion.
"The joint study shows that freer trade in goods and services (between Canada and India) could increase Canada’s gross domestic product by between $6 billion and $15 billion on an annual basis, and boost bilateral trade with India by 50 percent, directly benefiting Canadian sectors such as forestry, energy and manufacturing," Van Loan said.
The study said that a free trade agreement would add $6 billion to $12 billion to India’s GDP annually.
Van Loan was speaking to reporters after meeting with Indian Minister of Commerce and Industry Anand Sharma. The two said a date had not yet been set for formal negotiations to begin on a Canada-India free trade agreement.
The ministers said they agreed to the establishment of working groups to look at increasing trade in six priority areas: infrastructure, mining, energy, agri-foods, education, and the information technology sector.
Van Loan and Sharma also said they believe Canada-based Research In Motion (RIM.TO) will be able to reach an agreement with India that gives police and security agencies access to encrypted BlackBerry communications. [ID:nN24232453]
India has expressed concerns that encoded BlackBerry services could be used to stir political or social unrest. It had threatened RIM with a ban if it were denied access to data carried on the popular smartphones.
($1=$1.03 Canadian) (Reporting by John McCrank; editing by Peter Galloway)
