FIPPA, CEPA to conclude soon: Commerce Minister

TORONTO: Commerce Minister Anand Sharma has said the Foreign Investment Protection and Promotion Agreement and Comprehensive Economic Partnership Agreement between India and Canada, which would safeguard investors' rights and boost bilateral trade and investment, would be finalised soon.

"India and Canada have exchanged draft of Foreign Investment Protection and Promotion Agreement ( FIPPA) agreement and differences over the taxation and expropriation issues will be resolved soon, and negotiations have started on the Comprehensive Economic Partnership Agreement (CEPA)," Sharma told newsmen.

Sharma said that while India wanted that taxation and expropriation issues should not be part of the proposed FIPPA agreement and these issues should be dealt with separately in the double taxation treaty between the two countries, Canada wanted taxation to be part of the pact.

India had maintained the same stand when it had signed similar agreements with other countries, he added.

The Minister said that he would be meeting Canadian Prime Minister Stephen Harper, Minister of International Trade Peter Van Loan and other ministers in Ottawa today and would try to resolve the outstanding issues.

Both countries have begun negotiations on CEPA between India and Canada, he said.

"FIPPA and CEPA would open up markets for both countries businesses looking for new opportunities abroad," Sharma said.

Later addressing top executives of Canadian companies at a dinner hosted by the Canada-India Business Council (C-IBC), the Minister said: "India's trade and investment partnership with Canada is on an exciting path; one that holds great promise for both countries as we continue toward lasting economic recovery."

He said that Prime Minister Manmohan Singh's recent visit to Canada and Canadian Prime Minister's visit to India last year, underlined the commitment of both the nations to enhance their relationship to increase the bilateral trade to USD 15 billion annually in the next five year.

"This is an achievable target," said Sharma, adding that both the leaders welcomed the conclusion of the joint study, which identified substantial potential economic gains that both countries could achieve through CEPA.

Sharma also said that Minister Loan would be visiting India in next few weeks on his invitation.