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Canada is hopeful that the visit of Prime Minister Justin Trudeau to India will ease investment inflows from that country into here even as both sides continue to haggle over de-linking signing of the Foreign Investment Protection and Promotion Agreement (FIPPA) with that of the Comprehensive Economic Partnership Agreement (CEPA).
Investment inflows from Canada to India continue to remain a concern, especially for the Canadian pension funds that are holding back investments worth $10-15 billion in the absence of a FIPPA, as they are seeking predictability and stability in safeguarding their investments, according to diplomatic sources.
Sources also said while more work needs to be done before the FIPPA can be concluded, Trudeau’s visit may give the necessary push to the issue, which has become a sore point in the bilateral trade and economic ties.
While Canada has issues with India’s model Bilateral Investment Treaty (BIT), it has asked India to “de-link” its conclusion with that of the CEPA. This is because, Canada believes concluding FIPPA will be much simpler and it is more important to sign it at the earliest in order to attract big-ticket investments from that country into India, sources said.
Sources said while more rounds of negotiations on the CEPA are needed, the FIPPA is almost ready.
All these issues are top of Trudeau’s agenda as he sits for his first formal summit-level meeting with Prime Minister Narendra Modi on February 23.
High-level delegation
Trudeau will be leading a high-powered delegation consisting of Minister of Defence Harjit Singh Sajjan, Minister of Innovation, Science and Economic Development Navdeep Bains, Minister of Small Business and Tourism Bardish Chagger, Minister of Science and Minister of Sport and Persons with Disabilities Kirsty Duncan, and Minister of Infrastructure and Communities Amarjeet Sohi.
The Canadian Prime Minister is starting his visit from Sunday with a visit to the famous Taj Mahal, following which he will be travelling to Ahmedabad to visit the Sabarmati Ashram the next day.
He will be in Mumbai on February 20 where he will be holding bilateral meetings with several business leaders. The next day he will visiting the Golden Temple in Amritsar after which he will return to Delhi on February 22.
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