[Canada] Trade deal sought

from The Toronto Star

India eyed for NAFTA-like pact Few goods flowing to `Asian giant'

by Andrew Mills

OTTAWA—The federal government will work toward signing a NAFTA-style free trade agreement with India, says Deepak Obhrai, the new parliamentary secretary for foreign affairs.

"We should grab the opportunity to get into this growing market now," Obhrai (Calgary East) said in an interview, adding that the Tory caucus firmly supports signing such a deal.

"Signing a free trade agreement with an Asian giant would be the next step forward ... to take advantage of the immense opportunity that is there."

Trade experts say that given the strength and sophistication of both markets, far more goods and services should be flowing between Canada and India. Removing government-imposed tariffs, which serve as a barrier to that trade, is exactly what's needed to give the Canada-India trade relationship the boost it needs, they say.

"The trade level right now is underwhelming. Nowhere to go but up," said Ottawa trade consultant Peter Clark.

"They have some pretty high tariffs in India and it would be useful to get preferential access to the market."

There are tremendous opportunities for Indian companies to be purchasing Canadian goods and services in such sectors as agriculture, high-tech, auto parts and textiles, Clark said.

"It's about time. I'm very enthusiastic," said Kam Rathee, president and executive director of the Canada India Business Council.

With India's population surging beyond the one billion mark, it represents the second most populous market in the world, after China, whose population is about 1.3 billion. Trade between Canada and China stands at about $20 billion annually, far outpacing the approximately $1.7 billion in trade between Canada and India, according to the Department of International Trade.

Free trade critics, however, caution that while such a relationship between the two countries would benefit the wealthiest sectors of both societies, it would do nothing to alleviate the serious levels of poverty, especially in India.