Fifth Ministerial Dialogue on Trade & Investment (MDTI) between India and Canada

In News 

• Recently ,India and Canada held the fifth Ministerial Dialogue on Trade & Investment (MDTI) in New Delhi. 
  • The Ministers underlined the significance of the MDTI as an institutional mechanism for forging robust bilateral trade and investment ties and enhancing economic cooperation between both countries. 

Major Highlights 

•  Comprehensive Economic Partnership Agreement (CEPA):
  • Both the countries decided to restart talks for a comprehensive economic partnership agreement (CEPA) .
    • CEPA talks with Canada had derailed amid the COVID-19 pandemic but were expected to restart after the Canadian elections concluded in September 2021. 
    • Bilateral goods trade between the two nations stood at $6.3 billion in 2021 and the two sides agreed that a comprehensive trade agreement would help bolster trade and investment flows.

•  Early Progress Trade Agreement (EPTA): 
  • Both sides agreed to consider an interim agreement or Early Progress Trade Agreement (EPTA) that could be concluded early as a transitional step towards the CEPA. 

• It would be consistent with Article XXIV of the General Agreement on Tariffs and Trade. 

• EPTA shall include high level commitments in goods, services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement, and may also cover any other areas mutually agreed upon. 

India-Canada Bilateral Relations

• Overview : 
  • India-Canada bilateral ties are underpinned by shared values of democracy, pluralism, expanding economic engagement, regular high level interactions and long-standing  people-to-people ties.
  • Prime Minister of India’s visit to Canada in April 2015 elevated the bilateral relation to a  strategic partnership. 

• Bilateral Mechanisms
  • Both sides pursue bilateral relations through the dialogue mechanisms such as  Ministerial level- Strategic, Trade and Energy dialogues; Foreign Office Consultations; and  other sector specific joint working groups (JWG). 

• Economic Relations
  • Bilateral trade in goods amounted to USD 6.73 billion in 2019-20 (India’s exports : USD  2.85 billion and India’s imports: USD 3.88 billion).
    •  The bilateral trade in Services in 2019 was USD 3.10 billion. 
    • Major items of India’s exports to Canada include gems, jewellery and  precious stones, pharmaceutical products, ready-made garments, mechanical appliances,  organic chemicals, light engineering goods, iron & steel articles, etc. 
    • India’s imports from  Canada include pulses, roots & tubers, newsprint, wood pulp, asbestos, potash, iron  scrap, copper, minerals and industrial chemicals, etc.

• Nuclear Cooperation – 
  • A Nuclear Cooperation Agreement (NCA) with Canada was signed  in June 2010 and came into force in September 2013. The Appropriate Arrangement (AA)  for the NCA was signed in March 2013, under which a Joint Committee on Civil Nuclear  Cooperation was constituted.

• Science and Technology 
  • Indo-Canadian Science and Technology cooperation has been primarily focussed on  promoting Industrial R&D which has potential for application through development of new  IP, processes, prototypes or products. 
    • Canada was a partner country for the Technology  Summit 2017.
  • Department of Biotechnology under IC-IMPACTS program implements joint research  projects in health care, agri-biotech and waste management.
  • The Department of Earth Science and Polar Canada have started a programme for exchange of  knowledge and scientific research on Cold Climate (Arctic) Studies. 

• Space – 
  • India and Canada have been pursuing successful cooperative and commercial relations  in the field of Space since the 1990s mainly on space science, earth observation, satellite  launch services and ground support for space missions. 
  • ISRO and Canadian Space  Agency (CSA) have signed two MOUs in the field of exploration and utilisation of outer  space in October 1996 and March 2003. 
  • ANTRIX, the Commercial arm of ISRO, has  launched several nanosatellites from Canada. 
  • ISRO in its 100th Satellite PSLV launched  on 12 January 2018, also flew the Canadian first LEO satellite, from Indian spaceport  Sriharikota, Andhra Pradesh.

• Education
  • Education is a key area of mutual interest. Recently India became the top source of  foreign students studying in Canada. The MoU on Higher Education (2010) with Canada  was renewed in February 2018.

• Security and Defence
  • India and Canada collaborate closely in international fora, particularly through the UN,  Commonwealth and G-20. Defence ties have been expanding with mutual ship visits. 
  • There is robust cooperation on counter terrorism issues particularly through the  framework of the JWG on Counter Terrorism. 

• People-to-People
  • Canada hosts one of the largest Indian diasporas in the world, numbering 1.6 million  (PIOs and NRIs) which account for more than 4% of its total population. The diaspora has  done commendably well in every sector in Canada. In the field of politics, in particular,  the present House of Commons (total strength of 338) has 22 Members of Parliament of  Indian-origin. 

• Cultural Exchanges – Canada was the Country of Focus at the 48th International Film  Festival of India held in Goa in November 2017. There is also an India – Canada Coproduction Agreement in films. 
  • Diwali has been celebrated on Parliament Hill for the last 18  years.

• Cooperation in COVID-19 Pandemic
  • Repatriation flights: Special charter flights were operated by the Canadian High  Commission and facilitated by India to evacuate stranded Canadian nationals from India. 
  • Supply of medicines: Export of a total of 12.34 crore paracetamol tablets, 5 crore  Hydroxychloroquine tablets and 3510 kgs of Hydroxychloroquine Sulphate USP (API); and  10 Million eye shield with face mask were approved and shipped to Canada. 

Source:TH