Trade and Economic Cooperation
The legal framework for the Russian-Canadian economic cooperation is based on the Agreement on Trade and Commercial Relations (1992), the Agreement on the Stimulation and Mutual Protection of Capital Investments (signed in 1989 and entered into force in 1991), the Agreement on Economic Cooperation (1993), the Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital (1995), the Air Services Agreement (2000), the Agreement on Cooperation between Russian Regions and Canadian Provinces and Territories (2000).
In October 1995 in order to coordinate efforts in developing bilateral trade and economic ties there was established the Intergovernmental Economic Commission comprised of several subcommissions and working groups on agro-industrial complex, the Arctic, aerospace, infrastructure and other projects.
During the visit of the Chairman of the Government of Russia, Mr. Victor Zubkov, to Canada in November 2007 the Joint Statement on the Russian-Canadian economic cooperation was issued, series of inter-agency arrangements, including on cooperation in the field of agriculture, fisheries, development of indigenous people and northern territories, as well as the declaration of intent on establishing technical working groups in the fields of food safety, animal and plant health, were signed.
Russian regions (Moscow, St. Petersburg, the Republic of Tatarstan, Krasnoyarsk Region) and provinces of Canada (Ontario, Quebec, Manitoba, Alberta) maintain friendly and mutually beneficial ties. In September 2016 a delegation headed by the President of the Republic of Tatarstan, Mr. Rustam Minnikhanov, visited Toronto and Montreal, where several agreements on cooperation in aircraft construction, culture and sport were signed.
Until 2014 the Russian-Canadian trade and economic cooperation had been developing progressively. The largest volume of bilateral trade was registered in 2008, when it reached 3,2 billion US dollars. Several mutually beneficial projects on the level of large business were carried out in the sphere of aircraft construction (in particular, between the “Russian Helicopters” company and “Pratt and Whitney” Corporation; the JSC “Irkut” and “Short Brothers” Company; between the JSC “Ural Works Civil Aviation” and “Diamond Aircraft” Company), as well as in oil production (participation of “Rosneft” in the development of oil reserves of the Cardium Shale Formation in Alberta).
After the anti-Russia sanctions were set forth by Ottawa in 2014 followed by reciprocal measures of Russia, the bilateral trade and economic relations have declined significantly (in 2016 the volume of trade dropped to 1,16 billion US dollars). Nevertheless, despite the restrictions, Russia-Canada cooperation continues in the mining sector, machine-building and aircraft construction. There are regular contacts going on between Russian regions and provinces of Canada.
About 14 joint Russian-Canadian enterprises were created within the period of 2014-2016, including:
- production of warm and cold asphalt in a number of Russian cities;*
- production of railway locomotives in the Saratov Region;
- production of high-precision cutting tools in Yekaterinburg.
Business representatives of both countries, participating in the work of the Russian-Canadian Business Council and the Canada–Eurasia–Russia Business Association (CERBA) urge for maintaining and expanding bilateral trade and investments, cancelling restrictions and barriers that hamper business relations, especially at times when access to new markets is becoming a crucial matter.
* Seven enterprises, located in six cities of Russia (Moscow, Belgorod, Ryazan, Krasnodar, Orenburg, Togliatti).