Trade and Economic Cooperation
The legal framework for the Russian-Canadian economic cooperation includes 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 the Intergovernmental Economic Commission was established with several subcommissions and working groups on agro-industrial complex, the Arctic, aerospace, infrastructure and other projects with an aim to coordinate efforts in developing bilateral trade and economic ties.
In 2005, Canada and Russia created bilateral Business Council, which included working groups on mining and metallurgy, energetics, information and communication technologies, transport.
During the 2007 visit of Chairman of the Government of the Russian Federation Victor Zubkov to Canada the parties issued a Joint Statement on the Russian-Canadian economic cooperation and signed series of inter-agency arrangements, including the ones on cooperation in the field of agriculture, fishery, indigenous people and development of northern territories, as well as the declaration of intent to establish technical working groups in the area of food safety, animals and plants health.
Russian regions (Moscow, Saint Petersburg, the Republic of Tatarstan, Krasnoyarsk Region) and provinces of Canada (Ontario, Quebec, Manitoba, Alberta) maintain friendly and mutually beneficial ties. A delegation headed by President of the Republic of Tatarstan Rustam Minnikhanov visited Toronto and Montreal in September 2016, where signed several agreements on cooperation in aircraft construction, culture and sports. A delegation of the Republic of Sakha (Yakutia) headed by Deputy Head of the regional Government Kirill Bychkov was on an official visit to Canada in December 2019. The sides, in particular, agreed on continuing efforts in resettling wood bison to Yakutia.
The Russian-Canadian trade and economic cooperation had been developing progressively until 2014. The largest volume of bilateral trade was registered in 2008, when it reached 3.2 billion US dollars. Several mutually beneficial large-business projects 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 Canada’s anti-Russian sanctions in 2014 followed by the reciprocal measures of Russia, the state of bilateral trade and economic relations have significantly deteriorated (for example, in 2016 the volume of trade dropped to 1.16 billion US dollars). Nevertheless, despite the restrictions, Russia-Canada trade volume within the period of 2016-2019 increased by 64 % and reached 2 billion US dollars. Russian exports to Canada has also doubled especially in the spheres of oil and oil products, mechanical rubber goods, mineral fertilizers and palladium.
Business representatives of both countries, participating in the work of the Russian-Canadian Business Council and the Canada–Eurasia–Russia Business Association (CERBA), continue urging for maintaining and expanding bilateral trade and investments, cancelling restrictions and barriers that hamper business relations, especially when access to new markets is becoming more crucial for both countries.