#RubySahota, #JustinTrudeau, #HarmandirSahib, #Brampton, #Canada, #India, #Jindal, #Patiala
Ottawa, Feb 21 (Canadian-Media): Ruby Sahota, Member of Parliament (MP) for Brampton North visit to India alongside Canada's Prime Minister Justin Trudeau, five Cabinet Ministers, the Brampton MPs and other MPs began on February 17th 2018 and is expected to conclude on February 24th 2018, media reports said.
Both Canada and India reportedly share a special relationship based on a common language, similar institutions and forms of government, and a commitment to enjoy democracy..
India, reportedly being one of the fastest growing economies internationally, offers tremendous opportunities for the growth of middle class in Canada.
Sahota’s visit included stops in New Delhi, Jandali, Patiala, Amritsar, Chandigarh, Ludhiana, and Hoshiarpur and will provide her with an opportunity to connect with Indian leaders in government and business as well as promote the empowerment of women and girls and strengthening economic ties between Canada and India.
During her visit to her paternal village of Jandali, Sahota was greeted warmly by thousands of well-wishers including prominent community leaders and activists of various constitutional, social and religious organizations.
Sahota also spoke with law students at Patiala’s Punjabi University, visiting a family-run small business, inaugurating a literature festival, and visiting the Harmandir Sahib (commonly known as the Golden Temple) with Prime Minister Justin Trudeau and 13 other Canadian MPs.
“Canada and India share a special bond, and are linked by tremendous people-to-people connections. The more than one million Canadians of Indian origin make the relationship between our two countries a truly special one. I look forward to building and fostering relationships to further strengthen the Canada-India friendship.” Sahota was reported to state.
(Reporting by Asha Bajaj)
Toronto, Feb 20 (Canadian-Media): Canada's Prime Minister Justin Trudeau, during his recent visit to India, announced Tuesday in front of an audience at the Canada-India Business Forum in the Taj Mahal Palace Hotel, Mumbai, India that Canadian and Indian companies have signed 66 new contracts worth $1 billion in total, expected to create 5,800 jobs in Canada, media reports said.
In investment by Indian companies reportedly close to $250 million in Canada, which will pick up the remaining $750-million tab,
"We have several plans in Canada for three businesses, which is fibre, carbon black and rolled aluminum products," said Birla "We are very happy investors. I think just the ease of doing business, the business friendliness of the Canadian government across the country I think is something that is a true delight for an investor. Someone whose tasted that will always want to come back for more," Kumar Mangalam Birla, the industrialist was reported to state and added that provincial governments had also been co-operative.
Canadian trade with India can best be described as underperforming. The Harper government in 2012 set itself an objective of increasing two-way commerce to $15 billion by 2015.
"That figure was optimistic, and they haven't reached it," said Rohinton Medhora, who heads the Centre for International Governance Innovation in Waterloo, Ont. Trade between the two countries is still stuck at just over $8 million annually.
"Trade is something that responds to economic incentives, and the fact is, for a long time India was a relatively closed economy," said Medhora.
India's protectionist instincts are still alive, as seen recently when it slapped tariffs in the 40 to 50 per cent range on Canadian dried peas and chickpeas. (Pulses are Canada's single most important export to India, generating over a billion dollars in sales for prairie farmers.)
Getting those tariffs lifted or reduced has been one of the missions of Trudeau's visit.
"I brought this issue up at the highest level with Prime Minister Modi a few weeks ago," he said Monday evening.
"I will bring it up with him again on Friday. I will continue to talk about pulses and agricultural exports from Canada to India at every chance I get."
Talks on a foreign investment protection agreement and a comprehensive economic and trade agreement have also stalled.
That's partly because India insists on working on both deals at the same time, while Canada would prefer to move ahead now with the foreign investment pact and worry about the free trade deal later.
India motors aheadIndia's inefficient state sector and bureaucracy were also a factor in holding its own potential back. For years it lagged behind China in annual growth, but in recent years, as China's economic motor has slowed, India's has accelerated, and is expected to post growth in the seven per cent range this year.
That produces both new demand for goods and services from other countries, and more money with which to buy them.
"India seeks energy security; Canada can provide it," says Medhora, who is in Mumbai for the business forum. "Trade is very much an area where the two countries have not reached the potential that they should.
"Ultimately, these two countries and their businesses don't know each other, and that has to change for trade to grow. Free trade deals are nice to have, but they're not necessary or sufficient conditions for trade to grow."
Indian immigration to Canada, the second source country for new immigrants, is building greater awareness of Canada on the subcontinent. That in turn opens the door to the creation of cultural and educational links that the government of Canada is trying to foster on this trip.
And that explains why Trudeau is meeting three of India's biggest movie stars — Akshay Kumar, Shah Rukh Khan and Aamir Khan — on the same day he's entertaining CEOs.
In 2011, Bollywood was lured by the governments of Canada and Ontario to hold its version of the Oscars in Toronto. Already, Bollywood producers — like their Hollywood counterparts before them — were discovering the attractions of Canada as a place to make movies.
Since then, a number of Bollywood blockbusters have been filmed in Canada — a trend the Trudeau government wants to foster.
Student numbers explodingThe benefits of Bollywood are twofold. Most obviously, some of the movies' revenues will remain in Canada, where the spinoffs benefit everyone from cameramen to caterers.
Less obviously, when Indian audiences watch those movies, they help to sell Canada as a brand and a place to be.
The growing awareness of Canada in the Indian mind has produced an explosion of interest in Canadian universities and colleges.
Shah Rukh Khan is mobbed by fans as he arrives for the premiere of his film Ra.One in Toronto on Oct. 26, 2011, the year Bollywood was lured by the governments of Canada and Ontario to hold its version of the Oscars in Toronto. (Frank Gunn/Canadian Press)
That trend accelerated sharply following the election of Donald Trump in the U.S. that has been followed by an unprecedented six per cent decline in international visitors to the U.S., even as international travel continues to grow in almost every other market.
The Canadian Consulate in India reported a doubling in the number of student visas issued to Indian citizens between 2016 and 2017.
The demand is to strong that even after hiring more staff, the consulate has had to cycle other staffers in and out of India from other posts on six- to eight-week shifts.
Today, 124,000 Indian students are paying to attend classes in Canada. Tourism is up as well.
Those students may return to India with Canada at front of mind as a land in which to do business and source products, and with contacts in the country to help make that happen.
(Reporting by Asha Bajaj)
#DonaldTrump; #CanadianBanks; #U.S.TaxReforms
Financial experts say Canadian firms have lost their competitive advantage to their U.S. peers, who will be more competitive on mergers and acquisitions now due to United States Prime Minister Donald Trump's administration's tax reform package, said economists, media reports said.
Two of Canada's big banks are sounding the alarm over the negative impact that Canada's economy will see as a result of new tax reform measures in the U.S. under the Trump administration.
Analysts from both Toronto-Dominion Bank (TD) and the Canadian Imperial Bank of Commerce (CIBC) put out reports this week highlighting how Canadian businesses have lost their competitive advantage to their U.S. peers and how this could impact economic activity.
"Canada's formerly favourable position in corporate taxation has eroded considerably, with the U.S. now holding the edge," said economists at TD.
"[Tax reforms] along with growing NAFTA uncertainties, increases the likelihood of a slow bleed of investment from Canada to south of the border," they said.
Strategists at CIBC, meanwhile, pointed out that a lower tax rate in the U.S. makes Canada a less attractive destination to locate headquarters, manufacturing in the country has become less competitive, and Canadian firms will see their U.S. peers more competitive on mergers and acquisitions now.
"With a revitalized tax code, CEOs have another reason to locate in, or worse yet, relocate to the US," said Ian de Verteuil of CIBC.
Tax cutsIn December, U.S. lawmakers passed the $1.5-trillion US tax reform bill, known as the tax cuts and jobs act (TCJA) — making the biggest change to the U.S. tax code in over 30 years.
he complex legislation cuts the U.S. corporate income tax rate to 21 per cent from 35 per cent, and gives other business owners a 20 per cent deduction on business income, among other changes.
Prior to this law, the U.S. had one of the highest business tax rates among G7 countries, with no decline over the past 20 years. Canada, meanwhile, had one of the lowest corporate tax rates in the group and rates had been in consistent decline for several years.
"For Canadian companies, the focus has so far been on companies that win from the lower overall level – because they have large U.S. operations and were accruing taxes at a higher rate," said Verteuil, listing companies like New Flyer Industries — which gets over 90 per cent of its revenue from the U.S.
But he also highlighted that there was a "far more insidious" aspect of the tax reform for Canadian firms, as businesses become "tentative on betting too heavily" that Canadian exports will have long-term "unfettered" access to the U.S.
Meanwhile, the reports come as U.S. President Donald Trump made headlines on Monday after complaining about Canadian trade practices.
He threatened implementing a new international tax that has revived fears of new American import duties.
Derek Burleton, economist at TD said the risk to Canada from U.S. tax reductions does put the heat on the Canadian government to take action in the upcoming budget.
"We do not believe that a tit-for-tat reduction in tax rates is necessary to guard against these risks, since taxes form only one part of the competitiveness equation," he said.
"Maintaining longer term fiscal sustainability, increasing the efficiency of tax systems through revenue-neutral tax reforms and well-thought-out investment in human capital and skills training can achieve the similar aim of improving competitiveness," he added.
Finance Minister Bill Morneau is scheduled to sit down with leading economists in Toronto on Friday for a pre-budget meeting.
(Reporting by Asha Bajaj)
Toronto, Feb 8 (Canadian-Media): A panel discussion on 'Canada-India Economic Partnership' has been scheduled by Rotman School of Management, University of Toronto, on Monday, February 12, media reports said.
The panel discussion will focus on issues of importance to businesses, institutions and individuals from both these nations and is particularly topical given that the Canadian Prime Minister Justin Trudeau will embark on a week-long visit to India from February 17 to 23, the organisers said.
Rotman School of Management/Facebook
India’s GDP growth at 7.2 percent in 2017, is among the highest in the world, according to reports. This makes India an attractive market for Canadian corporations.
In 2016, two-way merchandise trade between Canada and India was worth just around $8 billion (almost balanced equally between exports and imports).
By comparison, the bilateral China Canada trade was over $80 billion (very unbalanced between $20 B in exports and over $60 B in imports).
So clearly Canada can benefit by furthering its trade relations with one of the largest and fastest growing emerging markets, the organisers said.
Some of the questions that this panel will discuss include focus areas, should Canada turn to India as it looks to diversify its trade relationship in a potentially post- NAFTA world, role of the diaspora in furthering India-Canada economic relations, and the role of higher educational institutions and research centres.
Panelists include Ambassador Dinesh Bhatia, Consul General of India – Toronto; Le Luoung, Director, Nurture Growth Bio Fertilizer Inc.; Prashant Pathak, CEO, Ekagrata Group; and Soumen Roy, Managing Director, Tata Consultancy Services, Canada.
The discussion will be moderated by Partha Mohanram, Director - India Innovation Institute and CPA Ontario Professor of Financial Accounting, Rotman School of Management, University of Toronto.
The panel discussion will be held at the institute's premises.
(Reporting by Asha Bajaj)