The Honourable David Emerson, Minister of International Trade, today announced the conclusion of negotiations on a Foreign Investment Protection and Promotion Agreement (FIPA) with India. He made the announcement following a meeting in Toronto with his Indian counterpart, the Honourable Kamal Nath, Minister of Commerce and Industry.

“The Government of Canada considers India to be a priority market for the country. And we are delivering on our commitment to strengthen our relationship with India,” said Minister Emerson. “This FIPA is a concrete step in our efforts to secure improved access for Canadian firms to a rapidly growing market.”

The Canada-India FIPA will provide added security and predictability to the legal framework for two-way investment. It sends a strong signal by providing business from both nations added assurance for their investments in the other country. Given the strategic importance of investment as a driver of trade in today’s global economy, a FIPA provides a solid platform from which Canada and India can grow their commercial relationship in the future.

“The Indian market offers tremendous opportunities for Canadian investors,” said Minister Emerson. “Canada is strongly committed to encouraging two-way investment. This agreement will provide a stable environment for investors and will further stimulate trade and investment flows between our two countries.”


FIPAs are bilateral agreements that protectand promote foreign investment through legally binding rights and obligations. They encourage two-way investment by providing investors with the protection and predictability they need when investing in foreign markets. The two ministers met in Toronto as part of Minister Nath’s three-day visit to Canada. The meeting built on a recent visit to India by Minister Emerson and a successful Canadian trade mission to India led by Ted Menzies, Parliamentary Secretary for International Trade, in March of this year.

In their meeting, Minister Emerson and Minister Nath reviewed a number of bilateral trade and investment issues, and discussed ways of building on the FIPA to further deepen the Canada-India partnership. They also took stock of ongoing WTO negotiations and discussed how best to move forward in these talks.

Last year, our two-way trade grew to a record level of $3.6 billion, including a 55 percent increase in merchandise exports to India. That constitutes the highest increase in 14 years.

Two-way foreign direct investment increased by more than 17 percent to $528 million. Stronger growth is also anticipated in the coming years in light of the vibrant relationship being built between the business communities of both countries.

Minister Emerson also noted that Canada’s New Government is committed to growing these numbers and intensifying our commercial relationship with India. Consequently, Canada is further enhancing its trade resources in existing offices in India in locations such as New Delhi and Mumbai, as well as in Hyderabad and Kolkata.

Canada and India have long-standing ties, built upon shared values of democracy and pluralism and on strong people-to-people links. Canada’s New Government is committed to bolstering economic relations between India and Canada.

Please visit http://www.international.gc.ca/commerce/india2/menu-en.asp for further information.