Calgary, AB, April 2, 2013 – “Indians and Canadians of Indian descent should be proud of India’s strong economy, particularly that it is no longer considered a poor developing country,” said Devinder Shory, MP (Calgary Northeast) in response to concerns raised by some that Canada was removing India from the list of countries under the General Preferential Tariff (GPT).
As part of Economic Action Plan 2013 the Canadian Government removed India, along with several other BRIC countries, such as Brazil, China, and Russia from the special tariff deduction list. Countries were placed on this list back in 1974 based on criteria set by the World Bank, and had lower tariffs applied to their exports in a bid to give preferential access to the Canadian market for poor developing countries. The removal from the special tariff deduction list will be effective January 1, 2015.
“Removal from the special tariff deduction list is evidence of how far India has come during this period. Its economy is growing each and every year and this growth has lifted millions of people out of poverty and into long-term prosperity.”
“The good news, said MP Shory, is that Canada and India are currently negotiating a Comprehensive Economic Partnership Agreement (CEPA). Trade between our two countries could reach $15 billion by 2015, and the agreement, once signed, will help to increase trade between our countries.”
“The removal of India from the GPT will encourage both our governments to finish trade agreement negotiations by the end 2013, which is the target set by both our governments. The goal of the negotiations is not only to eliminate or reduce tariffs and non-tariff barriers to trade, but also to increase and improve investment and expansion opportunities for businesses from both countries. Once the trade agreement is signed there will be no discernible impact from removing India from the GPT.”