The document discusses the textile trade scenario between India and Canada, highlighting key international trade agreements like the General Agreement on Tariffs and Trade and the Multi-Fiber Arrangement. It details the structure and contribution of the Canadian textile and apparel industry, including major imports and exports, as well as challenges faced by Indian exporters. Additionally, it outlines Canada's trade policies and ongoing negotiations for a Comprehensive Economic Partnership Agreement with India to enhance bilateral trade.

1. Presented by:
Kundan Ganvir
Textile Trade Scenario
with Canada

2. International Trade Agreements
▪ General Agreement on Tariffs and Trade ruled international Textile trade since 1948
▪ The Multi-Fiber Arrangement (MFA) governed international trade in textiles and clothing since
1974
▪ The WTO’s Agreement on Textiles and Clothing (ATC) to abolish MFA quotas marked a
significant turnaround in 2005
▪ The ATC provided for a stage-wise integration process within period of 10 years (1995-2004)
▪ Integration process divided into four stages starting with the implementation in 1995 as:
Each country was required to integrate :
(Stage i) 16 percent of the total volume of imports of 1990
(Stage ii) 17 percent at the end of first three year
(Stage iii) 18 percent at the end of third stage
(Stage iv) final integration of the remaining 49 percent of trade

3. Canadian Textile Industry
 The Canadian apparel industry plays a key role in the Canadian economy
 In 1994, the apparel industry contributed 2.2% of Canada's GDP
 Accounted for 5.7% of total manufacturing employment
 It is made up of some 2000 firms, mostly owned by Canadians
 Most foreign-owned firms, are the US-based MNCs
 Total employment in the industry is estimated at more than 1,00,000 people
 The supporting textile mills and retail stores that employ over 2,00,000 people
 Canadian Textile and Apparel imports:
• FTA with US in 1989 and 1992, caused high rise in imported textiles and apparels
• In 2004, 62% of Canadian textiles and apparels were imported
• In 2004, China, became highest exporter to Canada, with 15% share of total Canadian textile imports
• India accounted for 4% of Canada's total textile imports in 2004, double the proportion in 1992
• Other major textile exporters to Canada are UK, EU, Bangladesh and Mexico

5. Export of Various Textile Materials to Canada
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
1996-1997
1997-1998
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
Silk export to Canada
Rupees in Lacs
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Wool export to Canada
Rupees in Lacs
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Cotton export to Canada
Rupees in Lacs
0.00
500.00
1,000.00
1,500.00
2,000.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Other Vegetable fiber export to
Canada
Rupees in Lacs

6. Export of Various Textile Materials to Canada
0
5000
10000
15000 96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Man-made filaments export to
Canada
Rupees in Lacs
0
1000
2000
3000
4000
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Man-made staple fibre export to
Canada
Rupees in Lacs
0
1000
2000
3000
4000
5000
6000
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Waddings & Nonwovens export
to Canada
Rupees in Lacs
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
14,000.00
16,000.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Carpets export to Canada
Rupees in Lacs

7. Export of Various Textile Materials to Canada
0
500
1000
1500
2000
2500
3000
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Special woven fabrics export to
Canada
Rupees in Lacs
0
50
100
150
200
250
300
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
'12-'13
Industrial textiles export to
Canada
Rupees in Lacs
0
50
100
150
200
250
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Knitted textiles export to
Canada
Rupees in Lacs
0.00
20,000.00
40,000.00
60,000.00
80,000.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Accessories, knitted or
crocheted export to Canada
Rupees in Lacs

8. Export of Various Textile Materials to Canada
0.00
20,000.00
40,000.00
60,000.00
80,000.00 96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Accessories, not knitted or
crocheted export to Canada
Rupees in Lacs
0.00
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Other made up textile articles
export to Canada
Rupees in Lacs

9. Indian Textile Export To Canada- Trends
▪ Export of textile items is be covered by bilateral agreements
▪ Currently, 79% of apparel in Canada is imported
▪ The demand is stable; manufacturing is decreasing while imports are increasing
▪ India is fourth largest textile and clothing supplier to Canada, ahead of Mexico, Bangladesh and
Turkey
▪ Of the total RMG exports from India, 3.8% goes to Canada
▪ India's major exports to Canada include readymade garments, textiles, cotton yarn, carpets and
floor spreads
▪ Problems related to exporting textiles to Canada:
– Strict labor safety and working environment laws
– High quality standards, hard to fulfill
– Time limits and restrictions
– Excessive documentation process
– High risk business, vulnerable to changes (economic, social and cultural)
– Risk of damaged or lost goods in transit

10. Import of Various Textile Materials From Canada
0
50
100
150
200
250
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Silk import from Canada
Rupees in Lacs
0
200
400
600
800
1000
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Wool and other animal hair
import from Canada
Rupees in Lacs
0
50
100
150
200
250
300
350
400
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Cotton import from Canada
Rupees in Lacs
0
5
10
15
20
25
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Other vegetable fiber import
from Canada
Rupees in Lacs

11. Import of Various Textile Materials From Canada
0
100
200
300
400
500
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Man-made filaments import from
Canada
Rupees in Lacs
0
500
1000
1500
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Man-made staple import from
Canada
Rupees in Lacs
0
20
40
60
80
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Wadding and nonwovens import
from Canada
Rupees in Lacs
0
50
100
150
200
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Carpets import from Canada
Rupees in Lacs

12. Import of Various Textile Materials From Canada
0
10
20
30
40
50
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Special woven fabrics import
from Canada
Rupees in Lacs
0
100
200
300
400
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Industrial textiles import from
Canada
Rupees in Lacs
0
20
40
60
80
100
120
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Knitted textiles import from
Canada
Rupees in Lacs
0
20
40
60
80
100
120
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Accessories, knitted or
corcheted import from Canada
Rupees in Lacs

13. Import of Various Textile Materials From Canada
0
200
400
600
800 96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Accessories, not knitted or
crocheted import from Canada
Rupees in Lacs
0.00
5,000.00
10,000.00
15,000.00
96-97
97-98
99-00
00-01
01-'02
02-'03
03-'04
'04-'05
05-'06
'06-'07
07-'08
08-'09
09-'10
10-'11
11-'12
Other made up textile articles
import from Canada
Rupees in Lacs

14. Canada Trade Policies
Canada’s Global Commerce Strategy
GCS looks at five areas:
• Access to key markets
• Access to trade promotion and partnership development support
• Access to capital
• Access to technology
• Access to talent

15. Canada Trade Policies
Comprehensive Economic Partnership Agreement
• The Indo-Canadian joint study for feasibility and benefits of CEPA started in
November, 2009
• The study covered all bilateral trades in goods and services
• In November 2010, Canadian Prime Minister opened negotiations on importance of
cooperation in creating ambitious Free Trade Agreement
• Eighth round of negotiations on creating FTA concluded on June 2013
• The negotiations, including market access for goods, rules of origin, trade
facilitation, origin procedures, technical barriers to trade, sanitary and phytosanitary
measures, institutional provisions, and trade in services, including temporary entry for
business persons, telecommunications, and financial services

16. Canada Trade Policies
Foreign Investment Promotion and Protection Agreement
• A FIPA is an international treaty providing binding obligations on host governments
regarding their treatment of foreign investors and investments
• FIPA provides a stable legal framework to promote and protect foreign investment
• It sets out a range of obligations that host governments guarantee pertaining to non-
discriminatory treatment, expropriation, transfer of funds, transparency, due process
and dispute settlement
• Canada and India agreed to begin negotiations towards a FIPA in June 2013

17. Documentations for trade with Canada
Commercial
documents
Auxiliary documents Regulatory document Other document
Commercial invoice Performa invoice Shipping bill Black list certificate
Inspection certificate Intimation for inspection Export application Freight payment
certificate
Marine insurance policy Declaration of insurance Vehicle ticket/gate pass Insurance premium
certificate
Certificate of origin Shipping instructions Bank certificate of
realization
Legal invoice
Bill of lading Bank letter for negotiation
of documents
Airway bill
Shipment advice to
importer
Packing list
Bill of exchange