The agribusiness sector is potentially one of the big winners as Canada tries to negotiate a free trade deal with India by 2013, says the chief negotiator.
Don Stephenson, a senior foreign affairs department official, told the House of Commons international trade committee recently that India wants Canadian agricultural products but also technology and know-how.
He told MPs that among Canada’s targets in free trade talks with India are agriculture and food trade “where India’s growing population and rising living standards present expanding opportunities for Canadian producers.”
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Stephenson noted that at present, fertilizer tariffs are as high as 10 percent and tariffs on pulse imports are nominally between 30 and 50 percent but that penalty has been set aside for a temporary duty free access deal “but could be subject to India’s high tariffs in the future.”
He told rural Ontario Conservative MP Bev Shipley that lentils and potash are the two large export items now. “The tariff that either applies or could be applied to those exports in the future is relevant to us and a basic objective in these negotiations.”
But India is looking for more than agricultural imports. It also wants Canadian investment in Indian agriculture.
“India is looking for investment in food storage and food-handling systems beyond simply receiving the lentils,” he said. “
With respect to potash, they are looking for a long-term supply relationship with Canada.”
Stephenson said India is also looking for Canadian expertise in food handling and processing.
He cited a decision by McCain Foods to research the best potato variety for Indian conditions, then trained local farmers in irrigation and fertilizer application and now works with 1,200 Indian farmers who grow potatoes for a McCain’s plant there.
“That also involves the transportation and cold storage facilities to get their product successfully to their buyers in the Indian market,” he said. “Those are the kinds of investments and partnerships that India is looking for.”
The federal official said Indian negotiators also are interested in Canadian expertise in food safety and agricultural efficiency.
“I think we have a lot to offer each other,” he said. “Even if it is David and Goliath in terms of the size of our markets and our population, we have an awful lot to offer each other, particularly in agriculture,” said Stephenson.
Agreement on social security
•Canada and India are also close to signing an agreement that would make it easier for Indian professionals to work here, and vice versa.
•An official with Citizenship and Immigration Canada said there were more than 14,000 Indians working in Canada at the end of 2010.
Source: National Post
