Canada has concluded negotiations on a Foreign Investment Protection and Promotion Agreement (FIPA) with India, marking an important step in tightening bilateral trade ties, International Trade Minister David Emerson announced Saturday.

"This FIPA is a concrete step in our efforts to secure improved access for Canadian firms to a rapidly growing market," Emerson siad in a press release.

FIPAs are bilateral agreements that protect and promote foreign investment through legally binding rights and obligations. They encourage two-way investment by providing investors with the protection and predictability they need when investing in foreign markets.

"This agreement will provide a stable environment for investors and will further stimulate trade and investment flows between our two countries," Emerson said.

Emerson made the announcement following a meeting with visiting Indian Minister of Commerce and Industry Kamal Nath. The two reviewed some bilateral trade and investment issues and discussed ways of building on the FIPA to further deepen the Canada-India partnership, according to the press release.

Last year, two-way trade between Canada and India grew to a record level of 3.6 billion Canadian dollars (3.4 billion U.S. dollars). Two-way foreign direct investment increased by more than 17 percent to 528 million Canadian dollars (502 million U.S. dollars).

Source: Xinhua