Canada: Canada And India Explore A Comprehensive Economic Partnership Agreement

Copyright 2009, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on International Trade & Investment, May 2009


Earlier this year, Canada's Minister of International Trade, Stockwell Day, and Mr. Kamal Nath, India's Minister of Commerce and Industry, jointly announced the agreement of both countries to initiate exploratory discussions aimed at creating a comprehensive economic partnership agreement (CEPA). With the recent high-profile investments by Indian companies in Canada include the acquisition of Algoma Steel by Essar and the acquisition of Novelis by Hindalco, the announcement is timely. Minister Day stated that these talks responded to the recommendations made by the Canada-India CEO Roundtable in its September 2008 report, suggested objectives for both countries to pursue in a free trade agreement, and urged both the Canadian and Indian prime ministers to endorse the launch of negotiations for such an agreement as soon as possible.

The government notes that a "high-quality CEPA that eliminates tariffs on substantially all goods, opens up opportunities in services, establishes rules in investment and reduces non-tariff barriers" may give Canadian exporters considerable preferential access to India's market ahead of competitors, and would help to make Canada competitive with those countries that already have trade agreements with India in place.


This spring, the Government of Canada launched a process of public consultation regarding the possible Canada-India CEPA with provinces and territories, as well as businesses, industry associations and the general public. The government sought the views of all interested parties, notably businesses, provinces, territories and industry associations, on a wide range of issues, such as opinions on areas of goods export interest, views on market access liberalization for Indian products into the Canadian market, and advice on "trade facilitation" issues (e.g., significant impediments related to import procedures). While the official period of consultation has ended, government officials have advised us that the government will continue to take submissions from the public on an ongoing basis. Trade officers are currently in the process of compiling the public submissions into a coherent set of findings that will then be passed along to cabinet ministers for their review. The government has advised us that exploratory discussions between Canada and India are expected to begin later this year.


India is projected to be the world's third-largest economy by 2050. Canadian companies view it as a key market due to India's growing population, rising per capita income levels, rapidly expanding manufacturing, high-technology and services sectors, and associated infrastructure and natural resources requirements. The Government of Canada considers India to be a "priority market", and identifies the following sectors as offering clear market opportunities for Canadians:

  • agriculture, food and beverages;
  • service industries and capital projects;
  • information and communication technology;
  • oil and gas equipment and services;
  • electrical power equipment and services; and
  • aerospace and defence.

Two-way merchandise trade between Canada and India reached a record high of C$4.6-billion in 2008, with exports of C$2.4-billion and imports of C$2.2-billion. Exports to India consist mainly of fertilizers, vegetables (pulses), paper and paperboard machinery, woodpulp, electrical and electronic equipment, and precious stones and metals. Service exports reached C$363-million in 2006 (the most recent statistics available). Imports from India consist mainly of organic chemicals, precious stones and metals, knit and woven apparel, machinery, iron and steel products, and electrical and electronic equipment. Additionally, with respect to investment, Statistics Canada values Indian foreign direct investment (FDI) in Canada at C$446-million for 2007, up dramatically from C$222-million at the end of 2006, though this figure does not accurately reflect investment by Indian companies routed through other jurisdictions. It is the Canadian government's goal to triple bilateral trade between India and Canada in the next five years.


Canada and India have already concluded a number of bilateral agreements designed to advance their economic partnership, including a science and technology cooperation agreement and an air services agreement. The two countries also signed a joint statement in 2007 to create the Canada-India Forum for Environmental Cooperation. Further, in January 2009, Minister Day and his Indian counterpart committed to implementing the Canada-India Foreign Investment Promotion and Protection Agreement (FIPPA) that had been concluded by the two countries in 2007.

However, Canadian companies continue to face substantial challenges in India, including low knowledge of Canadian capabilities, trouble in obtaining timely and actionable market intelligence, significant competition, restrictive import regulations, limitations imposed on foreign services providers, weak enforcement of IP rights, and minimal transparency in the contracting process.


A CEPA between Canada and India which may go further than a free trade agreement and elimination of tariff barriers and cover issues relating to rules of origin, customs and administration, trade in services, investment, government procurement, etc., would provide a considerable boost to the trade and investment flows between the two countries.

The first steps towards significantly enhanced trade and investment between Canada and India have been taken through the Canada-India Foreign Investment Promotion and Protection Agreement. The potential launch of CEPA negotiations may result in a significant economic partnership creating important business opportunities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Events from this Firm
27 Oct 2016, Seminar, Toronto, Canada

Please join members of the Blakes Commercial Real Estate group as they discuss five key provisions of a commercial real estate purchase agreement that are often the subject of much negotiation but are sometimes misunderstood.

1 Nov 2016, Seminar, Toronto, Canada

What is the emotional culture of your organization?

Every organization and workplace has an emotional culture that can have an impact on everything from employee performance to customer or client satisfaction.

3 Nov 2016, Seminar, Toronto, Canada

Join leading lawyers from the Blakes Pensions, Benefits & Executive Compensation group as they discuss recent updates and legal developments in pension and employee benefits law as well as strategies to identify and minimize common risks.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.