BC-India Business event highlights new trade opportunities with India amidst trade war with US

0
47

By Surbhi Gogia
Canada-India diplomatic relations hit rock bottom last year, marked by the suspension of diplomatic ties. Despite political tensions, trade between the two nations never took a back seat, highlighting the significance of this partnership. With tariffs from the United States looming large over Canadian exports, industry experts argue that it is time Canada diversified its trade relations and forged stronger economic bonds with other nations, especially India.
Against this backdrop, the BC India Business Network (BC-IBN) in association with Scotiabank Wealth Management organized a highly informative session on Friday, January 24, at the KPMG building in Vancouver. The event brought together policy makers, diplomats and distinguished panelists, including Jean-François Perrault, Chief Economist at Scotiabank; Jeff Nankivell, President of the Asia Pacific Foundation; Sukesh Kumar, Partner at KPMG Vancouver; and Professor Andrew Gemino, Associate Dean of Executive Education at Simon Fraser University. The discussion underscored the enduring importance of the Canada-India trade relationship. Panelists observed that while political disputes have slowed potential growth, the foundational trade relationship has remained intact and continued, albeit without realizing its full potential.
Celebrating a Decade of Connections
Vivek Savkur, President of BC-IBN, informed that the organization has been connecting businesses from both nations for a decade. “This event is the first of many planned to celebrate the 10th anniversary. It’s significant amid global economic uncertainty. The question we face is whether to retaliate or pivot towards new markets like India. India, with its fastest-growing economy and immense market potential, offers untapped opportunities for Canadian goods and services,” he said.
Savkur also highlighted Trade Minister Mary Ng’s commitment to ensuring economic ties with India remain unaffected by political strains. “Both nations have demonstrated resilience, ensuring that trade continues as a cornerstone of our relationship,” he added.
BC’s Strategic Response to US Tariffs
Brenda Bailey, British Columbia’s Minister of Finance, addressed the gathering with a sobering analysis of the potential impact of U.S. tariffs. “BC’s trade with the U.S. accounts for 52% of our exports. Should these tariffs materialize, we anticipate significant economic repercussions, including job losses and a spike in unemployment,” she said.
Minister Bailey outlined a three-pronged strategy to mitigate these effects. The first is responding to threats by collaborating with “Team Canada” to highlight the reciprocal impact of tariffs on the U.S. economy. Second is strengthening BC’s economic environment while maintaining commitments to climate protection and Indigenous objectives. And third and very significant was diversifying trade relationships, particularly with India, to reduce over-reliance on the U.S.
She stated that a crucial element of the strategy is diversifying trade to other countries. While trade diversification has long been considered, the focus on US meant the full potential of other markets remained untapped. Now is the time to seize this opportunity she remarked, highlighting India’s significance as a trading partner.
She informed that the government has made significant investments to assist businesses in exploring international markets. “The trade representatives in Mumbai, New Delhi, Bengaluru, and Chandigarh are invaluable resources for penetrating these markets. For small businesses, entering foreign markets can be challenging,” she noted, sharing her own experience of starting a business in Japan. “Every door opened for me when I sought their help,” she added, emphasizing the importance of their work.
She also underscored the potential of British Columbia’s Clean Tech industry, describing it as a promising frontier for future trade opportunities.
India’s Consulate General Highlights Synergy
Indian Consul General Masakui Rungsung stressed the natural trade synergy between Canada and India, rooted in shared democratic values and the vibrant Indian diaspora in Canada. “Canada’s strengths in energy, agriculture, and clean tech align with India’s expanding consumer base and rapid economic growth. Trade and investment remain integral components of our partnership,” he remarked.
Highlighting the robust trade figures, Rungsung noted that India’s exports to Canada in 2023 were valued at USD 5.56 billion, while Canadian imports stood at USD 3 billion. Canadian pension funds have invested USD 95 billion in Indian markets, reflecting the country’s appeal as a favorable investment destination.
The event concluded with a panel discussion addressing inflation, interest rates, and the path forward for Canada-India trade relations. Panelists agreed that despite the current diplomatic impasse, the trajectory for economic ties remains optimistic. It does not matter whether Liberal or Conservative leader becomes the prime minister, the relationship with India will be optimistic in every aspect. With someone saying “Any new government will be better.”
Panelists also highlighted the “uncertainty” surrounding Canada’s political and economic future as a key factor affecting investment confidence. Businesses remain cautious, postponing plans to explore opportunities in India and other markets.
When Link asked if trade between Canada and India had real potential or if India was just simply seen by Canada as a backup plan, Jeff Nankivell, who has extensive diplomatic background, said, “Regardless of tariff threats, we were in conversation about the potential. For instance, before these issues arose, we were on track for a partial trade agreement, and a Team Canada trade mission was planned for October 2023, but it was canceled,” he explained. “We often engage with the business community, and while existing trade volumes have continued to grow, it’s reasonable to assume that the pace of growth might have been faster without recent challenges. Some businesses that had planned to expand beyond North America initially considered India but put those plans on hold,” he added.
As Canada navigates turbulent times, strengthening trade ties with India could unlock new opportunities, ensuring mutual prosperity and a brighter future for both nations.