Trade no longer bilateral,its a triangular process:Dr Poloz
New Delhi, Apr 4 (UNI) Chief Economist of Export Development Canada (EDC), Dr Stephen Poloz today said globalisation has had a huge impact on international trade making it a triangular process instead of a bilateral one.
Dr Poloz was speaking at a seminar organised by the Confederation of Indian Industries (CII) and the EDC. The theme for the meet was, 'What comes next after globalisation?' The economist said that one country sells materials to the other and the final product is sold in the international market.
Canadian High Commissioner Lucie Edwards presided over the meeting.
International trade is a very important tool of business and globalisation has played a pivotal role in it, he said adding sixty per cent of the global GDP is through trade and developing countries have more than half of the world's income.
Apart from buying and selling, trade has other dimensions such as creating foreign affiliates and increasing foreign direct investment (FDI), Dr Poloz said. He also added that the fundamental law of gravity regarding globalisation is too strong and hence globalisation will not cease in the near future.
He also spoke on the future of trade relations between India and Canada and said that both countries have a healthy relationship, but indicated that it was only the tip of the iceberg. He also emphasised that India and Canada should invest more in each other's industries which would help them in tapping business in each other's continents.
National Council of Applied Economic Research (NCAER), Director General, Suman Bery said that India had always benefitted from globalisation regardless of what the Left parties had to say. He reminded the gathering that for a country like India to grow, agriculture should be globalised as majority of the Indians are engaged in agriculuture.
He said that they need to be brought into the global trade and for that agriculture has to be involved directly.
Inapex Ltd, Chairman and Managing Director, V K Mathur, Canadian High Commission, Senior Trade Commissioner, David McKinnon and ECD Chief Representative Mr Peter Nesbitt were also present at the seminar.
UNI MP SS DS1613