Josh Smith - Manager, International Trade Policy and Negotiations Branch, BC Ministry of International Trade

1. Canada-India Comprehensive Economic Partnership
Agreement (CEPA) Negotiations: Possible Benefits for BC’s
Agri-foods and Seafood Sectors
November 2014
Joshua A. Smith, Manager, Trade Policy and Negotiations Branch

2. Canada has implemented FTAs with these countries
Canada’s FTAs
Canada is in negotiation or exploration talks with these countries

3. • India’s economic growth has averaged more than six
percent per year over the past decade.
• Projected to have the second largest GDP in the
world by 2050.
• Within India's industrial corridor, 20 whole new cities
are being built. Lots of mouths to feed and services
to provide.
• India is a BC Jobs Plan priority market, along with
China, South Korea, and Japan, and agri-foods is a
priority sector.
• BC has Trade and Investment Representative
offices in Bangalore, Mumbai and Chandigarh.
Why India?

4. BC Trade and Investment Reps
Mumbai
India’s financial and business capital
> Investment attraction
> Resources
> Transportation
> Film
Chandigarh
Capital of the Punjab with strong cultural
connections in BC
> Agrifood
> International Education
4
Chaitanya Patil
> Managing
Director
Shukla Banerjee
> Digital Media &
ICT
Nidhi Bhardwaj
> Life Sciences and
Agri-foods
Agnel Worth
> International
Education
Kavita Sharma
> Life Sciences and
Transportation
Manager
Shruti Patil
> Agrifoods,
Program
Assistant
Dawood Shakir
> Agrifoods,
Clean tech,
infrastructure
Madur Aggarwal
> Head,
Investment,
LNG and Mining
Satyesh Askulkar
> International
Education
Trupti Khadye
> International
Education,
agri-food
Ananth Bhatt
> Clean
technology and
infrastructure
Bangalore
India’s technology and innovation capital
> Technology (ICT, Life Sciences, Clean Tech
> International Education
> Research and Innovation
Isha Saraf
> Investment

5. BC and India
• India was BC’s sixth largest export destination in 2013.
• Despite $468 million in BC exports of goods to India in
2013, agri-foods and seafood exports accounted for
only $2 million.
• Most of BC’s top exports to India have tariffs lower than
five percent (e.g., various types of wood pulp, copper,
and molybdenum).
• India still maintains high tariffs on other top BC export
items including agricultural goods, some wood products,
and clothing items.
• Agriculture is very important to India’s economy
accounting for 17.4 percent of GDP and 50 percent of
the workforce.
• Food security remains an issue. Between 40 to 60
percent of food rots before getting to market.

6. •In November 2010, Canada and India announced their agreement to launch
negotiations for a Comprehensive Economic Partnership Agreement or CEPA.
•Joint Study: export gains from a CEPA for Canada could range from between 39% to
47%.
•Eight rounds of negotiations have taken place. Negotiators have resumed talks,
although a formal ninth round has not yet been scheduled.
•Slow progress on many chapters, including goods chapter.
•The recent victory of Narendra Modi in the Indian General election may jumpstart these
negotiations.
•BC strongly supports CEPA negotiations and hopes that a concluded deal will improve
market access for goods and services, eliminate tariffs, and reduce non-tariff barriers.
The CEPA: Background

7. CEPA: Challenges for Agrifoods/Seafood
•India maintains high tariffs on a number of agricultural
lines including:
oVarious fruits etc. (30 percent)
oPacific Salmon (30 percent)
o Green House Vegetables (30 percent)
oWine (150 percent)
•With agriculture being such a sensitive sector in India,
most FTAs that India negotiates have longer phase out
periods.
•India also maintains restrictive sanitary and
phyto sanitary measures such as onerous
fumigation and certification requirements.
•Need for Pest Risk Assessments (PRA)
prevent some goods from entering the Indian
market (e.g., Greenhouse vegetables).
•Number of other restrictions

8. CEPA: Possible Benefits
•Federal Government: 40,000 new jobs across the
country or a $500 boost to the average Canadian
family’s annual income.
•Exports could also increase between 39% to 47%.
•Will benefit BC agri-foods and seafood producers by
eliminating Indian tariffs gradually and by enhancing
cooperation mechanisms to address non-tariff
barriers.
•Agriculture phase outs may take time (5 to 10 years
have been the norm in India’s previous FTAs).
•Stronger SPS and Technical Barriers to Trade
chapters may improve joint cooperation, information
exchange, promotion of international standards,
creation of committees etc.
.

9. CEPA: The Future
•Inter-sessional work continues between Canadian and Indian officials.
• Renewed sense of optimism since Modi’s election.
•Ninth round sometime in the near future.
•At recent events (e.g., Canada-India Business Council events) some
commentators have urged a conclusion in the first two years of Modi’s
mandate (or it may not get concluded).
•BC urges the conclusion of the CEPA: a less comprehensive agreement is
better than no agreement.

10. Thank You.
Questions?
Josh.Smith@gov.bc.ca