Canada, India set to strengthen ties

By Sridhar Krishnaswami

OTTAWA, MAY 11. The sensitive issue of sanctions is now out of the way in Canada- India relations, and the focus is on the future. It is not merely in recovering the lost ground of the last three years but in the conviction that the vast potential in bilateral relations can actually be transformed into reality.

``India is an important country and it is going to be a more important country in the years to come,'' is the official refrain here. And in all the talk of the potential there is the conviction that the accent must be on the economic with the perception that if good economic relations are established, it would help resolve political and other contentious issues of the relationship. Over the last several months, the Liberal Government of Mr. Jean Chretien had made some important adjustments to its India policy, the main one being the realisation that by pursuing the sanctions route, Ottawa had not achieved much and that the engaging India was in the interest of Ottawa and bilateral relations. But few here are harping on the past while acknowledging that differences will remain and will have to be dealt with in a number of areas including the nuclear. In the months to come, the activity is undoubtedly going to pick up and the basis has already been laid out in the visit to India by senior officials and members of the Chretien government over the last three months.

While Canada is looking forward to the visits by the Ministers of Commerce and Power from India, it is also making preparations for the Minister for International Trade and the Foreign Minister to visit New Delhi later this year and in the beginning of next year.

Although no meetings have been formally scheduled, the two Foreign Ministers could meet on the sidelines of the ASEAN Regional Forum session in Hanoi in July.

There is even the possibility of a similar interaction between the two Prime Ministers at the Commonwealth meeting in Australia in October.

The resumption of dialogue in the exchange of high- level visits levels will have its impact on bilateral relations. At the same time, Ottawa's focus is on ways to strengthen the cooperation in trade and investments.

It sees India as a valued player in the Group of 20 and has called for its leadership role in the World Trade Organisation. ``India could lead in a constructive way in a number of areas and this is going to happen,'' says a senior official. Bilaterally, with the expiration of the agreement on textiles and clothing in 2005 and the end of quotas, India's share of the Canadian market will grow as it makes its own fabric.

Ottawa is opening a Trade Office in Chennai later this year - and perhaps over a period of time will have a full-fledged Consulate General here. Opening of other trade offices in places such as Hyderabad is also being contemplated.

The two-way bilateral trade for 2000 was about Canadian $1.7 billion, balance in favour of India to the tune of about Canadian $735 millions.

But this trade is seen as just a fraction of what could be accomplished in the coming years. Similarly, it is said China in the last 20 years attracted about $300 billions in investment whereas India is bringing in only some $3 billions a year.

Officials say it is not just a question of Canadian investors looking for opportunities in India and that Ottawa is also pushing itself as a platform for North America for potential Indian investors.

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Section  : International
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