Addressing the issues of MFN, ratchet, ISDS etc. raised by the Canadian side, the Commerce Minister, Ms Nirmala Sitharaman, clarified that the negotiation should not get lost in peripheral issues and should focus on bringing in promotion and protection elements, which provide stability and predictability to investments in each other’s country. She said that India has approved the model text as a template and the negotiation under FIPA should go forward in accordance with the model text. However, both sides should remain flexible to incorporate the essential elements of investment protection while negotiating the Agreement.

The Indian Minister also raised the issue of reforms in the Temporary Foreign Workers Programme (TWFP) which has been made more stringent by Canada and which adversely impacts the services trade from India. She discussed the importance of the ease of movement for intra-company transferees on short term visa for filling in certain crucial and specialized activities. She gave example of a few Indian companies who have made investments in Canada but are finding it difficult to source key employees from India as intra-company transferees. The Canadian Trade Minister assured that a number of steps have been taken to facilitate the ease of movement for professionals into Canada. He described the recent initiative under the Global Skill Strategy Programme wherein the visa application for high skilled technicians, Professors, Researchers etc. will be disposed of within two weeks’ time. Similarly, for professionals visiting for less than a year, a fast track process is being set up which will be similar to a concierge service. This will be extended to companies invested in Canada on a priority basis.

Both the Ministers agreed that the present trade which is in the range of USD 8 billion is much below its potential and there is a need to conclude CEPA in a time bound manner for ensuring higher levels of trade in goods and services. They directed the respective Chief Negotiators on both sides to agree on a time line and conclude it as per the agreed time line.

The Canadian Trade Minister raised the issue of the fumigation requirement for the pulses being imported into India and the need for a resolution to the issue. The Commerce and Industry Minister assured to look into the issue in consultation with the Ministry of Agriculture. Smt. Sitharaman also raised the issue of organic equivalence to India’s National Programme on Organic Production (NPOP) by the Canadian Food Inspection Agency. The Trade Minister from Canada agreed to take up this issue with the Canadian Agriculture Ministry.