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Tuesday, November 6, 2012

Trade and Investment Deals with India



 Harper attended a business roundtable in New Delhi, intended to showcase 14 trade and investment agreements that "demonstrate the increasing depth of the Canada-India relationship,"  Prime Minister Stephen Harper participated in a business roundtable in New Delhi. 

International Trade Minister Ed Fast emerged from the meeting to say that $2.5 billion in new business deals with India are now in the works. Some of that, he conceded, is in the form of memoranda of understanding – not cash in the bank. 

The largest deal was a previously announced $1.2-billion agreement between Montreal's La Coop fédérée and Indian Farmers Fertilizer Cooperative (IFFCO) to build a urea production plant (used for nitrogen fertilizer) in Bécancour, Que., creating 200 local jobs. Another technology research deal between Prairie Pulp & Paper Inc. of Winnipeg and Central Pulp & Paper Inc. from Saharanpur, India, will see a new wheat straw-based pulp and paper plant built in Manitoba, representing a $500-million to $600-million investment. Montreal's Bombardier was also highlighting two deals: a new $200-million contract from Mumbai Railway Vikas 

Corporation to design and manufacture equipment for 72 commuter trains with 12 cars each operating on the Mumbai suburban rail network, on top of another deal with the Delhi Metro Rail Corporation for 614 cars, worth over $900 million. Fast referred to the business environment in India as "opaque" and "byzantine." 

He added that a foreign investment protection agreement, which is one of the government's main goals, is still not ready to sign, even after eight years of negotiation. The two nations have yet to agree on the strings attached to Canada selling India uranium under a 2-year-old nuclear deal.

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