India is Canadian Key Priority in Trade

Canada is deepening trade ties with India as its key priority as the two countries work out the modalities of a Comprehensive Economic Partnership Agreement (CEPA)) to be signed soon. The Indo-Canada Chamber of Commerce lauds the efforts of the Harper government to improve economic relations with India. A Canada-India joint study in 2010 concluded that free trade could expand Canada's economy by at least $6 billion and increase bilateral trade with India by 50 percent. Last year, the bilateral trade between Canada and India totalled $4.2 billion. With the two countries likely to sign a Comprehensive Economic Partnership Agreement (CEPA), they aim to triple it by 2015. Canadian goods face 16 percent tariff in India while Indian goods face nine percent tariff in Canada. But once the deal is signed and tariffs are eliminated, each country is expected to gain between $6 billion and $15 billion in trade volume. Currently, India is Canada's 15th largest trading partner while Canada ranks 33rd on India's list.