Canada
(Source : High Commission of India, Ottawa)
Canada’s Preferential / Free Trade Agreement with India
Discussions on Bilateral Investment Promotion and Protection Agreement (BIPPA) and Comprehensive Economic Partnership Agreement (CEPA) have continued. The 4th Annual Trade Ministerial Dialogue was held on 13 November 2017 in New Delhi. During the meeting, both sides expressed their strong commitment for early finalization of a progressive, balanced and mutually beneficial CEPA and BIPPA. The last round of CEPA negotiation was held in Ottawa on February 7-8, 2018, while the last round of BIPPA negotiation was held in New Delhi in November 2017.
In May 2020, conversations were held between India and Canada to schedule a digital video conference (DVC) on 22 June 2020 for further discussing CEPA and FIPA (Foreign Investment Promotion and Protection Agreement) negotiations.
Potential products of exports for India
Due to impact of COVID-19 pandemic, there is a contraction of Canadian domestic demand as Canadian economic activity has reduced. This has impacted demand for Indian goods across the spectrum, except the Pharmaceutical sector. The dampening of Pharmaceutical and related sector may arise due to restrictions on exports of certain items from India.
However, on 4 May 2020, Canada received 5 million tablets of hydroxychloroquine from India as a part of Indian government’s decision to fight the pandemic globally. The Canadian pharmaceutical imports from India saw an increase of 5.7% Jan-May 2020 over the corresponding period last year.
Another sector from Indian exports to Canada that has seen considerable appreciation in Jan-May 2020 (12.7%) are articles of iron or steel in form of steel pipes (line & circular). Line pipes, tubes, tapes, cocks, grinding balls and valves made of iron or steel has been majorly supplied from India on the back of the country’s strong manufacturing base to Canada’s vast oil and gas pipelines. Canada are under construction including the US$ 12.6 billion Trans Mountain Pipeline, it is expected that the export of steel pipes from India to Canada will continue to increase in the coming months during the course of resumption of international trade post Covid-19 disruption.
Indian exports of Fish, Crustaceans, Molluscs and Other Aquatic Invertebrates to Canada saw an increase of 8.7% in Jan-May 2020. This is another sector/area where there is significant scope for expansion of Indian exports to Canada with India currently being the fourth-biggest seafood exporter in the world and the top exporter of shrimp to USA for the last four years. On the other hand, Canada`s fish and seafood sector is a growing and vital part of the Canadian economy, led by the country’s vast export portfolio, Canadian imports of Fish, Crustaceans & Other Aquatic Invertebrates stood at USD 720 million in Jan-May 2020, dominated by USA, China, Chile and Vietnam with India in the 5th position.
Details of significant trends/analysis
Trade - India imported goods worth C$ 204.02 million from Canada in May 2020; while goods exported from India to Canada were worth C$ 255.84 million. The total bilateral trade between India and Canada in May 2020 stood at C$ 459.86 million. The total bilateral trade between India and Canada in Jan-May 2020 is worth C$ 3,475 million (C$ 3.45 billion). India’s exports to Canada decreased by 14.5% in Jan-May 2020 over the corresponding period last year. Exports of only 4 products out of top 10 products increased during Jan-May 2020, due to the global supply chain disruption from the COVID-19 outbreak. Anyhow exports of iron or steel articles saw a reasonable increase of 12.7%, exports of pharmaceutical products increased by 5.7%, exports of fish, shrimps & prawns increased by 8.7%, that of textile articles by 2.1% as compared to the same period last year. Additionally, out of the top 25 export items, exports of mineral fuels, mineral oils, bituminous substances and mineral waxes remarkably increased by 1915.5%, that of miscellaneous chemical products by 24% as compared to the same period last year. Export of pearls, precious stones and jewellery from India to Canada saw a sharp decline of 41.3% in Jan-May 2020 over last year’s figures. Exports of boilers, machinery and mechanical appliances decreased by 37.8%, woven clothing and apparel articles decreased by 38.9% and that of organic chemicals by 29.2%.
Meanwhile, Canadian exports to India saw a sharp decline of 33.7% in Jan-May 2020 over the corresponding period last year, due to global logistic disruption caused by the outbreak of COVID-19 mainly led by a decline of 94.5% in exports of aircrafts and spacecrafts, exports of wood pulp and paper scrap decreased by 63.9%, exports of wood pulp and paper scrap decreased by 60.8%, textile articles & worn clothing decreased by 50.6% in exports and that of pearls, precious stones or metals, coins and jewellery by 42.8%. There was an increase of 15,252% in export of fats, oils and waxes and 217.8% in exports of nickel and articles thereof during Jan-May 2020 from Canada to India. Exports of tannins, dyes, pigments, paints, varnishes, inks and other similar substances saw an increment of 119.9%, exports of miscellaneous chemical products increased by 40.4%, exports of pharmaceutical products increased by 36.5% and that of edible vegetables and certain roots and tubers increased by 10.6%.
India’s bilateral services trade with Canada stood at C$ 4.02 billion in 2019. Bilateral services trade between both the countries in the first quarter of 2020 (Jan – Mar) stand at C$ 1.10 billion with exports (India to Canada) worth C$ 447 million and imports (Canada to India) worth C$ 659 million. India’s service exports to Canada is majorly in the form of commercial services driven by the ICT (Information and Communication Technology) services offered by a large group of Indian IT companies operating in Canada while Canada’s major service export to India is in the form of travel services.
High Commissioner H.E Ajay Bisaria`s interview with News 18
On May 3, 2020, in an interview with News 18, High Commissioner said that India and Canada are cooperating on all fronts amid the coronavirus crisis. India and Canada are strategic partners. He added that India has permitted the shipment of 5 million tablets of hydroxychloroquine-HCQ to Canada and are continuously providing information about the Indian model to Canada and acquiring information about the Canadian model. Under the G20, the two countries are also contributing to global efforts. HCI, Ottawa has also been working closely with students and Indian community residing in Canada. Indian origin doctors, pharmacies and institutions have helped people in many ways during these difficult times across Canada.
Invest India’s webinar with High Commissioner
On 5 May, 2020, High Commissioner H.E Ajay Bisaria interacted with Invest India over a webinar. Invest India made a presentation on how it is working with Canadian Pension Funds and other Canadian companies and what will be their future areas of focus to attract more investments from Canada. High Commissioner informed how the Mission and the two Consulates planned to project India as the best destination to the Canadian companies who could be interested in relocation. High Commissioner also enquired whether Invest India is in touch with such companies in Canada. Invest India conveyed that they are working closely with Canadian funds, creating opportunities for them and providing assistance with their queries.
ICBC Webinar : Navigating Canadian Economy post COVID-19
On May 12, 2020, Indo-Canadian Business Chamber, New Delhi organised a webinar for Indian companies in Canada with High Commissioner H.E Ajay Bisaria. The representatives of five Indian companies working in Canada joined the webinar. High Commissioner spoke about how India and Canada are managing COVID-19 crisis, exit from lockdown and the path of recovery
post-COVID. High Commissioner also spoke about the supply chains post-COVID, status of conversations on CEPA (Comprehensive Economic Partnership Agreement) between India and Canada and the evacuation of stranded Indians from Canada by special flights. Nathalie Bechamp of Invest in Canada spoke about the measures taken by Government of Canada to support businesses, students and Canadians during the difficult time of COVID and identified technology, life sciences, agriculture, food and financial services as key areas of cooperation between India and Canada.
ICBC Webinar : Navigating Indian Economy post COVID-19
On 20 May, 2020, Indo-Canadian Business Chamber (ICBC), with Invest India, organized a webinar called “Navigating Indian Economy Post Covid-19.” Ms. Manmeet K. Nanda, Joint Secretary, DPIIT, Government of India and H.E Nadir Patel, High Commissioner of Canada to India led the panel discussions. Besides various stakeholders of Indo-Canadian business corridor, representatives from prominent Canadian companies in India including Brookfield Asset Management, McCain Foods, IBI Group, Bourgault Industries, etc presented their views and reiterated their standpoints of long standing commitment towards Indian market. Ms. Nanda also outlined the various initiatives/amendments by Government of India to facilitate greater business/investment collaborations between India and Canada.
Kuwait
(Source : Embassy of India, Kuwait)
India’s exports to Kuwait in FY 2019-20 (Apr-Feb) were seen to have suffered only marginally (-0.06 percent) with the largest drop seen in exports of “Mechanical appliances & Machinery” (HS 84) and “Articles of Iron and Steel” (HS 73).
Under HS code 84, the largest decrease was seen in the exports of “Type of Centrifugal Pumps”: HS code 841370 (-66.94 percent YOY), and “Heat Exchange Units” HS code 841950 (-44.91 percent YOY).
Under HS code 73, exports of “Line pipes used for Oil and Gas pipelines” (HS code 730511) decreased by 81.84 percent YOY to US$ 8.6 million from 47.33 million in the same period in FY 2018-19, while exports of “Props and equipment for scaffolding, shuttering etc” (HS code 730840) dropped by 24 percent to US$ 4.06 million from US$ 5.39 in the previous year. A substantial increase was seen in the exports of “Vehicles” which grew by 41 percent YOY to US$ 91 million, while “Ceramic Products” grew by 43 percent YOY to US$ 52 million.
Under Vehicles HS 87:
Vehicles with cylinder capacity between 10,000 and 15,000 cc (HS code 870322) grew by 31 percent YOY to US$ 45.77 million.
Goods vehicles weighing between 5 and 20 tons (HS code 870422) grew by 260 percent YOY to US$ 13.31 million.
Vehicles with cylinder capacity between 1500 and 3000 cc (HS code 870323) grew by 274 percent YOY to US$ 10.8 million,
Vehicles with compression ignition weighing more than 20 tons (HS 870423) grew by 1396 percent YOY to US$ 9.92 million.
Potential products of imports from India:
901890: Instruments and appliances used in medical, surgical or veterinary sciences
Kuwait’s imports were USD 145.3 million in 2018, with India’s share 0.26 percent (USD 373,000). India’s exports for this product amounted to USD 218.8 million in FY 2018-19, growing by 44 percent to US$ 315.98 million in FY 2019-20 (MOCI data). Similar to the market for pharmaceuticals and wheat, market for medical/surgical appliances is dominated by few countries, there is a considerable scope for competitive products from India.
Tunisia
(Source : Embassy of India, Tunis)
Details of Significant Trends –
Investment - At the end of 2019, the flow of foreign investment reached in Tunisia, 2,648.2 million dinars (MDT) (around 939.07 $ US million) against 2,866.3 MDT (around $ US million 1016.41) in 2018, a decrease of -7.6%, according to the Promotion Agency foreign investment (Fipa Tunisia).
This amount is divided between foreign direct investment (FDI) of 2,479.1 MTD (around 879.11 $ US million) (a decrease of 9.6%) and 169.1 MTD (around 59.69 $ US million) in the portfolio with an increase of 36.2%.In addition, foreign investment in the energy sector decreased by -0.1% compared to 2018 to reach 909.4 MTD (around 322.84 $ US million), a rather stable situation. The services sector, also dropped by 51.8% compared to 2018 while the agricultural sector only received 18.6 MD (around 6.59 $ US million) of total investments in 2019.
Analysis - FDI currently represents 10% of productive investments, generates one-third of exports and over 15% of the total number of jobs. Tunisian Government provides many incentives to promote foreign investment in Tunisia. About 3353 foreign companies operate in Tunisia in diverse sectors. The Government has primarily encouraged export-oriented FDI in key industrial sectors, such as call centers, electronics, aerospace and aeronautics, automotive parts, and textile/apparel manufacturing. Foreign participation is allowed in the privatization program of state-owned or state-controlled enterprises. This has attracted a significant share of Tunisia’s FDI in recent years. The privatization programme has taken place mainly in telecommunications, banking, insurance, manufacturing, and fuel distribution.
The total foreign investment in Tunisia during 2018 was recorded $US 983.5 m and 939.07 $ USD million on 2019. The main investment sectors are textile, computer science, corporate services, energy and tourism. The sectoral distribution today shows a definite orientation towards industrialization.
Promising Sectors :
Agribusiness
Mechanical, Electrical and Electronic
Aerospace Industry
Plastics
Textile & Apparel
Leather & Footwear