Canada-India bilateral agreements sign of new relationship
January 11, 1996
On Day Two of their mission to India, Prime Minister Jean Chrétien
and Team Canada today witnessed the signing of six new agreements
between Canada and India that will strengthen bilateral co-operation
on telecommunications, transport, energy, taxation and justice.
"These agreements are part of our major effort to raise relations
between our two countries to a new level of relevance and importance,"
said Prime Minister Chrétien. "Along with the unprecedented
size and prominence of the Team Canada delegation, and the trade
and investment deals that Canadian businesses are signing here,
they signal to the world that the Canada-India partnership is
back in business."
The six agreements include:
- an agreement on double taxation;
- two memoranda of understanding between the Alberta Research
Council and Oil India and Oil and Natural Gas Corp. Ltd. of India;
- a memorandum of understanding between the Ontario Ministry
of Transportation and the Indian Ministry of Surface Transport;
- a memorandum of understanding on co-operation in telecommunications;
and
- a declaration of intent to negotiate an agreement on the transfer
of offenders.
These agreements were signed following a meeting between Indian
Prime Minister P.V. Narasimha Rao, Prime Minister Chrétien
and the Team Canada delegation. During the meeting, Prime Ministers
Chrétien and Rao also agreed to increase high-level consultations
between the two countries on political, economic, security, science,
technology and social issues.
The Prime Minister also announced the appointment of an Honourary
Consul in Madras, the immediate opening of a trade office in Bangalore
and the Government's intention to appoint an Honorary Council
in Calcutta. He announced that Canada would also open a Canadian
Education Centre in India in 1997 to promote Canadian educational
services.
More information on each of the agreements signed today are in
the attached backgrounder.
PMO Press Office: (613) 957-5555
NEW CANADA-INDIA BILATERAL AGREEMENTS
Backgrounder
Agreement for the Avoidance of Double Taxation and the Prevention
of Fiscal Evasion with respect to Taxes on Income and on Capital
The Governments of Canada and India have signed a revised Agreement
for the avoidance of double taxation that will replace the existing
one concluded in 1985. The revised Agreement, like the existing
one, ensures that profits, income, gains or capital arising in
one country and paid to a resident of the other country will not
be doubly taxed and it reflects more accurately the current tax
policies of the two countries. The revised Agreement will improve
the climate for investment and the conduct of business and will
reinforce economic relations between Canada and India.
Alberta Research Council, Edmonton, Alberta
Alberta Research Council (ARC) has signed two memoranda of understanding
with Oil India and with Oil and Natural Gas Corp. Ltd. (ONGC)
of India, two state-owned companies. Under these agreements, ARC
will provide strategic and technical services for the development
of India's non-conventional hydrocarbon reserves including the
heavy oil belt extending north from Bombay High and the waxy,
asphaltic crude oils and the oil shales in Assam. Together, the
value of these two agreements is $20 million. ARC has already
carried out an initial technical and economic viability study
for Oil India in the state of Rajasthan. ARC is also working with
Colt Engineering Corp. of Calgary and an Alberta oil wells completions
expert on a plan by ONGC to implement a heavy oil recovery project
in the state of Gujarat. ARC, a provincial corporation of the
Province of Alberta, has expertise in the production of hydrocarbons
from non-conventional oil reserves including oil sands, heavy
oil and oil shale, as well as capabilities in manufacturing, biotechnology
and information technologies.
Memorandum of Understanding on Surface Transport
Ontario Premier Mike Harris and the Indian Minister of State for
Surface Transport R. Murthy have signed a memorandum of understanding
renewing a 1993 agreement between the Ontario Ministry of Transportation
and the Indian Ministry of Surface Transport. Under the new agreement,
the two ministries will work together to implement India's plans
to improve its transportation system through technology transfer
and technical exchanges. They have pinpointed 21 areas for co-operation
ranging from technical and environmental standards to construction
materials and traffic management.
Memorandum of Understanding on Co-operation in Telecommunications
Industry Canada has concluded an agreement with the Ministry of
Communications of India to promote the expansion and modernization
of India's telecommunications services and gain admittance for
Canada's telecommunications industry into one of the world's largest
and fastest growing markets. Over the next five years, the Memorandum
of Understanding, which is aimed at developing an open regulatory
environment that encourages fair competition, will allow the introduction
of advanced telecommunications systems through rural and urban
field trials, pilot projects in network management, training in
policy, regulatory and operating know-how, as well as exchanges
of experts and scientific and technical information between both
countries. It could encourage public sector organizations to become
more commercially viable in the local telephone market and at
the same time help consumer groups and trade and business associations
in representing the needs of telecommunications users to the government.
As a result, this bilateral agreement will not only stimulate
the transfer of technology but also encourage joint ventures between
Indian and Canadian firms.
Declaration of Intent on the Transfer of Offenders
A bilateral treaty will be negotiated that will make it possible
for Canadian offenders already sentenced to serve terms of incarceration
in India to be transferred to Canada to complete their sentences,
and vice versa. The transfer of offenders is inspired by humanitarian
principles to relieve the suffering and to advance the rehabilitation
of Canadian offenders serving terms in other countries and foreign
offend ers incarcerated in Canada. The objectives of the transfer
of offenders are the contact of offenders with relatives and friends,
the facilitation of their social reintegration and international
co-operation on criminal justice. Key features of this agreement
are that the transfers be voluntary for the offenders and that
both the sending state and the receiving state concur on the transfer.
Expansion of Canadian Consular Representation
The Government of Canada has appointed an Honourary Consul in
Madras and is opening a trade office in Bangalore to improve Canada's
trade and consular representation in India. Madras is one of the
four major centres in India and Bangalore is the largest centre
for technology. These announcements are in addition to the appointment
of two new Trade Commissioners in New Delhi and in Bombay in 1994
and 1995. Expanding Canada's presence in India is one of the objectives
of Focus India, Canada's trade and investment strategy
for India, launched in June 1995.
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