Free trade agreement with India will boost Canada’s prosperity and security

Ottawa, Canada – The Canadian Coalition for Democracies (CCD) welcomes the decision of Prime Minister Stephen Harper’s Conservative Government to begin negotiating a “high-quality free trade agreement” with India. This initiative was announced by Parliamentary Secretary Ted Menzies on behalf of International Trade Minister David Emerson in India on Monday night.

“This is a significant step towards realigning Canadian foreign policy in the Asia-Pacific region with the realities of the 21st century,” said Dr. Salim Mansur, CCD’s Senior Fellow and professor of political science at the University of Western Ontario.

“A free trade agreement, if signed over the next few years, will pave the way for advancing economic, cultural, educational, and social ties between Canada and India. From an economic perspective, Canada must help develop India as a competitive supplier of low-cost consumer goods if we wish to continue to enjoy the price advantage of Asian manufacturing.”

The Liberal Government of Prime Minister MacKenzie King was instrumental in assisting the British Commonwealth to make a place for independent India as a republic. Canadian foreign policy had its “golden age” some half century ago under the stewardship of Lester Pearson as the Secretary of State for External Affairs. During this period, Canada’s strong partnership with India within the Commonwealth and the United Nations was a key component of Ottawa’s middle power diplomacy. Since then, the relationship between the two countries, despite the common heritage of parliamentary democracy, rule of law and English as an official language, has not been sufficiently nurtured. Today, India is world’s largest democracy, the 12th largest economy and by 2025 expected to likely become the 4th largest economy, and a global power with more than a sixth of the world’s population and a rising middle class of around 400 million.

“Looking ahead, the need for a Canada-India partnership is vital for both countries in the pursuit of common interests in wealth creation, global peace, regional stability and supporting the growth of democracies in the greater Middle East, Central and South Asia, Africa and the coastal states of the Pacific region,” added Mansur. “We also note that Canada’s commitment to Afghanistan is matched by India’s economic contribution, while Ottawa and New Delhi share similar concerns on UN reform.”

CCD applauds the Harper Government’s present initiative on trade with India, and looks forward to a “high-quality free trade agreement” with the world’s largest democracy being a top priority in Canada’s foreign policy.