Free Trade with India Gets a Boost

(Embassy – Laura Payton)

It may have taken him almost four years to set foot in India, but Prime Minister Stephen Harper leaves today having bolstered Canada's image in the Asian giant and with promises to start moving ahead on comprehensive trade talks.

However, a highly anticipated nuclear co-operation agreement – which some speculated would be finalized during the prime minister's visit following the weekend's Asia-Pacific Economic Co-operation meeting – remains elusive.

Yesterday, Mr. Harper and Indian Prime Minister Manmohan Singh oversaw the signing of two memoranda of understanding.

The first establishes a joint study group that will start working toward a comprehensive economic partnership agreement – the same advanced free trade-style agreement currently being negotiated between Canada and the European Union. It will encompass not just free trade but movement of labour and services as well.

Last year, business executives from both countries called on their respective governments to undertake free trade talks. In a statement yesterday, the Canadian Council of Chief Executives – which has led earlier calls on the issue – praised the decision to move forward.

"Today's establishment of the Joint Study Group sends a clear signal that our two countries are committed to an ambitious agenda of economic co-operation," said CCCE chief Thomas D'Aquino.

Peter Sutherland, a former Canadian high commissioner in India and deputy vice-chair of the Canada-India Business Council, says any step in the direction of a free trade agreement is progress, and that it underscores the interest and resolve of both governments to expand bilateral trade and investment. Read more here.