The Hindu Business Line : Canadian banks, insurers set for foray

Hyderabad March 14 Canada and India are working towards finalising a foreign investment protection and promotion agreement (FIPA) between the two countries.

Apart from facilitating increased trade, this agreement would encourage more Canadian banking and financial and insurance services players to enter the Indian market.

"Eventually, our endeavour would be to work towards having a free trade agreement," Mr Ted Menzies, Parliamentary Secretary to the Minister of International Trade and to the Minister of International Cooperation, said here on Wednesday.

Interacting with newspersons at a meeting hosted by the Confederation of Indian Industry, Mr Menzies said FIPAs are bilateral agreements that protect and promote foreign investment through legally binding rights and obligations. They encourage two-way investments by insulating investors against fraud and other financial concerns.

Mr Menzies, who was accompanied by a trade delegation said that the two-way trade, estimated at $3.6 billion (Canadian), could only go up significantly from here on. Part of this was a 54 per cent increase in merchandise exports to India to $1.7 billion.

The official said they would sign up for export development Canada in Mumbai that would further build on the trade relations.

He said that they draw upon considerable expertise in infrastructure development covering roads, airports and ports and some of the Canadian companies would like to partner in new projects.

Once this secure trade environment was created, more banking and insurance companies would enter India.

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