Cheaper Indian goods in Canadian market

TORONTO: Once New Delhi and Ottawa sign a free trade agreement to do away with many taxes and duties, India will join China in filling up Canadian stores with cheaper goods

In the G20 summit in Seoul on Friday, the prime ministers of the two countries announced the start of talks for a comprehensive economic partnership agreement during their meeting.

Welcoming the decision, the Toronto Star said, “While it may take many months before the details are worked out, when it does happen Canadians can expect to see more Indian-produced products on store shelves, and perhaps cheaper prices for items already imported from the Asian country.”

“The agreement should be a boon for business owners, who could open India-based offices, or simply target consumers in the country. Trade between Canada and India totals about $4 billion – the goal is to boost that to $15 billion.”

A free trade agreement is expected to add about $6 billion each to the economies of the two countries. The two countries want their trade to increase more than three-fold from the current $4.2 billion in the next five years. The main Canadian exports to India include machinery, fertilizers, wood pulp and vegetables, Indian exports comprise garments, metals, precious stones and jewellery, and electrical equipment.

However, Canadian banks and insurance companies will benefit immensely from a free trade pact with one of the fastest growing economies in the world because they want access to the south Asian market.
After the global meltdown triggered by the US which is Canada’s main buyer, Ottawa is trying to lessen dependence on its big neighbor by signing free trade agreements with many other nations. Economics experts described the talks with India as an “important development” for Canada.

“But, with every free trade agreement comes worries that Canadians could lose jobs. We’ve already seen Canadian companies hiring Indian-based call centres to field customer inquiries and that outsourcing could continue and even pick up.” This deal will definitely increase outsourcing of jobs to India.

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