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The recent US$40 billion bid for Canada’s largest potash company by Australian miner BHP Billiton, while unsuccessful, helped focus the spotlight on Canada as one of the world’s greatest providers of natural resources. 含羞草社区 appetite for resources of every kind is undeniable and, while it already looks to Canada for some of its resource needs (Canada is one of its largest suppliers of lentils and other pulses), there is potential for greater trade between the two countries, particularly in natural resources and agriculture.

Nurturing synergies

Recognizing this, both the Indian and Canadian governments are setting the stage for what could be a great economic partnership. During the November 2010 G-20 Summit in Seoul, prime ministers Manmohan Singh and Stephen Harper officially announced the beginning of free trade negotiations between India and Canada. This follows the September publication of a report by the Canada-India joint study group: Exploring the Feasibility of a Comprehensive Economic Partnership Agreement. Alongside these negotiations, the two governments have also recently stated that they are nearing adoption of a bilateral foreign investment promotion and protection agreement.

These high-level developments reflect an underlying synergy that Indian and Canadian business leaders have recognized for many years. Now, growing trends in various markets have made this synergy more apparent – nowhere more so than in natural resources.

Mining metals and expertise

Consistent with this imperative, in June 2010 at the G-20 Summit in Toronto, 含羞草社区 Ministry of Mines signed a memorandum of understanding with Canada’s Department of Natural Resources, intended to reinforce mining sector cooperation between the two countries. As India moves towards adoption of the new Mines and Minerals (Development and Regulation) Act, the memorandum reflects significant opportunities for Indian businesses seeking to import Canadian minerals.

Canada produces more zinc than any other country and it stands among the highest producers of nickel, lead, aluminium, and gold. As the world’s most significant centre of mining finance, Canada also offers Indian mining companies capital, expertise and an infrastructure of bankers, traders and geoscientists who understand this booming industry. The Toronto Stock Exchange and Venture Exchange together list 55% of all public mining companies and enabled them to raise over US$22 billion in 2009.

Plentiful energy

In addition to minerals, 含羞草社区 rapidly growing economy needs fuels, especially in the transportation sector. The size of Canada’s reserves (including oil sands) is second only to Saudi Arabia. The Canadian Association of Petroleum Producers predicts that in 2025, Canada will be producing about 3.5 million barrels of oil daily. Canada’s exports of coal are also among the highest in the world, and as coal prices have risen sharply in light of recent flooding in Australia, Canada’s coal reserves remain available to help ensure global demand is met.

Having signed a memorandum for cooperation in energy in November 2009, Canada and India have positioned themselves as close partners in the energy market, especially nuclear power. At the Toronto G-20 summit, prime ministers Singh and Harper witnessed their officials sign a milestone agreement to cooperate in peaceful uses of nuclear energy.

Under it India will have access to Canada’s nuclear technology, equipment, and fuel. The deal is an ideal match, considering 含羞草社区 intention to establish 12 new reactors, which will require 1,500 additional tonnes of uranium each year, and Canada’s status as the world’s largest producer of uranium.

Satisfying food needs

As 含羞草社区 economy continues to grow, its success will naturally depend on the health of its people. This requires food security, and Canada’s resources can contribute to this as well. Canada not only leads the world in production of potash, an essential component of industrial fertilizers, but Canadian wheat and canola, a crop invented by Canadian scientists in the 1960s, contribute significantly to global supplies. Further, Canada stands as the world’s largest exporter of pulses such as lentils, a staple of Indian cuisine for centuries.

While the case for increasing trade between Canada and India may be obvious, their common ground extends far beyond trade. As multicultural and multilingual states, India and Canada share pluralistic and democratic political traditions as well as a legal system rooted in English common law. These factors, combined with recent action by the governments of both nations, make this an opportune time for businesses to consider Canada as a stable and abundant source of natural resources for India.

Raj Sahni is a partner at Bennett Jones LLP and co-chair of its India practice. The firm has particular expertise in energy, oil and gas and natural resources, and more than 400 lawyers and advisors in Canada and Dubai. Christopher Somerville, an articling student, helped with this column.