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City Council Item I3-1 for February 13, 2013

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City Council Item I3-1 for February 13, 2013 T3-1-1 AMPTON cityS "m"" Flower City ^Corporation of the City of Brampton BRAMPTON CITY COUNCHL Date: January 31,2013 2 nrTr. p;^^ry fo 2Q16 File: M25-International ' Subject: Information Report: Indo Canada Chamber of Commerce 2013 India Trade Mission Results Contact: Dennis Cutajar, Commissioner of Economic Development & Communications (Tel: 905-874-2698) OVERVIEW • Between January 2-17, 2013 a delegation from the City of Brampton joined the Indo Canada Chamber of Commerce (ICCC) on their Trade Mission to India. • The City of Brampton extends a very special thank you to the leadership and volunteers of the ICCC for organizing an outstanding business mission to India. • A letter of appreciation from the ICCC can be found in Appendix 1 of this report. • India is forecast to become the third largest economy in the world, after China and the US, by the year 2040; overtaking all other developed economies. With its rapidly growing population and strong connection to Canada's diaspora, India is an important region for the City, and its international partners, to facilitate economic development initiatives and outcomes. • The 2013 business mission included meetings and presentations in six major Indian cities: Mumbai, Bangalore, Kochi, Ahmedabad, New Delhi and Amritsar. • Last September, the City also held meetings in Chandigarh, Amritsar and Mumbai. • The Brampton delegation branded 'Brampton' in over 40 formal and informal small and large group business meetings coordinated by the ICCC or economic development staff; directly met, networked and established relationships with over 100 business contacts; promoted business alliance and direct investment opportunities available in Brampton at various speaking engagements reaching over 1000 business people; generated wide awareness of Brampton as an attractive business location through Indian and Canadian media, as well as in the social media channels; and entered into three agreements. • The Brampton delegation generated 125 business leads and 20 prospects. • The City delegation included seven officials and a business representative from the City's Business Attraction and Retention Advisory Committee. • Economic development staff has followed-up leads and prospects since the end of the Mission; and will continue to do so in the months and years ahead. RECOMMENDATION 1. That the report prepared by Dennis Cutajar, Commissioner of Economic Development and Communications dated January 31, 2013, presented at the Council meeting of February 13, 2013, re: Information Report: Indo Canada Chamber of Commerce 2013 India Trade Mission Results (File: M25), be received. BACKGROUND Origin of Report This report originates from various sources, namely: 1. City of Brampton International Business Development and Marketing Plan, 2011 -2014 2. Information Report: Indo-Canada Chamber of Commerce 2013 India Trade Mission, presented to Council on December 14, 2012 by the CAO and Commissioner of Economic Development and Communications. This report outlined the goals, objectives and itinerary associated with the Mission. India Fact Finding Mission Mumbai, Amritsar, Chandigarh (September 9-18) The City of Brampton conducted a 10 day fact finding mission to India from September 9 ­ 18, 2012.The mission was anchored around the International Food Processing and Packaging show in Mumbai (Sept 11-13), and delegates participated in a comprehensive pre- qualified meeting program. Meetings were conducted with key officials at the NASSCOM headquarters in Mumbai. (ICT). A meeting was held with the Small and Medium Business Development Chamber (SME) in Mumbai. SME's play a vital role for the growth of Indian economy employing 60 million people and creates 1.3 million jobs every year. The City of Brampton Economic Development Office worked on an MOU with the SME Chamber that was signed in 2013. Delegates explored investment and trade opportunities in Chandigarh with municipal officials as well as investigated the potential for a Sister City Agreement. In Amritsar, delegates metwith the Confederation of Indian industries (CM) a non-profit, non government industry lead. This organization works closely with government on policy issues, enhancing efficiency, competitiveness and expanding business opportunities. Brampton has a Friendship City relationship with Amritsar, located in Punjab Province. A meeting was pre arranged between the City of Brampton and officials of the City of Amritsar to explore linkages and alliances between the two municipalities as well as a visit to the Golden Temple in Amritsar. CURRENT SITUATION Canadian Presence in India Canada is committed to investing more heavily in itsforeign posts in India, and in policies that establish and enhance important economic linkages between Canada and India. Canada recently announced the goal of driving two-way trade between Canada and India from $5 billion per year to $15 billion per year by 2015. ACanada-India joint study concluded "that a trade agreementcould boost Canada's economy by at least $6 billion. For Canada, a trade agreement with India will eliminate or reduce tariffs on goods, liberalize trade in services and directly benefit Canadian businesses and workers in all regions of Canada in sectors including primary agriculture, resource-related and chemical products, transport equipment, and machinery and equipment".1 The Canadian government reported that the "The sixth round of negotiations toward a Comprehensive Economic Partnership Agreement (CEPA) was held in Ottawa on November 15-17,2012. Progress was made in most agreed areas of the negotiations. Additional meetings and preparation for the next round are expected to take place in late January 2013. Since Canada and India announced the start of free trade negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) in November 2010, following the release of the Canada-India Joint Study Report, in September 2010, six rounds of negotiations have been held. The second round was held in Ottawa in July 2011, and the third, fourth and fifth rounds were held in New Delhi in December 2011, February 2012 and July 2012, respectively. Additional meetings relating to the fifth round were also held in New Delhi in August 2012. Progress has been made in all agreed areas of the negotiations, including market access for goods, rules of origin, trade facilitation, origin procedures, technical barriers to trade, sanitary and phyto-sanitary measures, institutional provisions, and trade in services, including temporary entry for business persons, telecommunications, and financial services. The CEPA negotiations remain a key priority in the Government of Canada's international trade agenda. Canada will seek to conclude negotiations with India by the end of 2013, as reaffirmed by Prime Minister Harper and India's Prime Minister Singh during the visit of PM Harper to India in November 2012"2. Municipalities have a role in assisting local companies with information and contacts to reach Indian markets; and to profile local companies for Canadian government staff in India. Moreover, municipalities have a role in assisting Indian companies interested in specific communities with business support services, such as local market intelligence, access to local professional and business experts through referral networks, costs of doing business, site selection and location research, facilitation of municipal approvals. The Consuls and Commissioners in foreign posts rely on local economic development practitioners for these services; and local economic development officers rely on colleagues in the Canadian posts to assist them with in-market services related to trade and investment. Business Development Activity: India Table 1 summarises the business development activity in India. Table 1: Business Development Report - India Missions Indicator Measurement Meetings (ICCC &Separate) 40_ Business Contacts 150 Leads 125 Prospects 20_ 1'Deeper Canada-India Trade and Investment Ties Will Create Jobs for Hardworking Canadians and Growth for Businesses of All Sizes' Trade MediaRelationsOffice, Foreign Affairs and International Trade Canada, February2012. 2Canada-India Free Trade Agreement Negotiations, Status of the Negotiations Trade Negotiations IDivision (TPE) Canada-India CEPA Negotiations, ForeignAffairs and International Trade Canada, 2012 :tvt-4 A business lead is defined when a sales presentation/pitch is made to a foreign business and when a foreign investment inquiry arrives at the City of Brampton through its web site, email, phone, in writing, by a referral or in-person contact. The company shows an interest in working with the City of Brampton EDO to explore opportunities for their business in the Brampton or Ontario or Canadian marketplace. A business prospect is defined when a company commits to investigate the Brampton marketplace in more detail. This occurs when the City receives one or more in-depth service requests to explore location, business opportunities. The foreign company demonstrates serious commitment when a business decision-maker from the company, or through an intermediary of the business, visits the City. Economic development staff received inbound interest in the following categories: (1) Business Alliances; and (2) Direct Investment With respect to business alliances, Indian companies are interested in entering the Ontario marketplace via a strategic alliance or merger/acquisition with an existing Canadian company. For example, knowledge and technology focused alliances in the cleantech/waste
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