As Canada gears up to host the G-20 meeting starting June, the Canadian finance minister Jim Flaherty was in India earlier this week to strengthen economic ties with India. In an exclusive interview with FE?s Ronojoy Banerjee he shared the agenda of G-20 meeting and India?s role in the new global economic order. Excerpts:

What is the broad agenda of the G-20 meeting in Toronto in June?

Sustainable growth framework, including the necessity of fiscal consolidation in some countries and a mutual assessment process whether it?s by the IMF or any other bod, tops the agenda. Financial sector reform, progress in respect to international financial institutions and trade issues including free trade or anti-protectionism follow on the list.

How important is India and G-20 for Canada?

India is an important and a large emerging economy. It has an important role in the G-20 as well. Leaders agree that G-20 is the primary economic forum in the world. And Canada is the host for G-20 in the next six weeks or so. Hence there are reasons to be here.

Protectionism is a very important issue for developing economies like India and China. How is Canada looking to play a role in promoting free trade?

First and foremost?by doing the right things ourselves. In Canada we not only say that we believe in free trade but we actually act in that way. In the budget this year, for example, we removed more tariffs like inputs on manufacturing. We are the first country to do that. We are also encouraging the conclusion of the Doha Round of Trade Talks (in WTO). Also, we encourage the developed economies not to erect any barriers that would be a topic of discussion in the summit in Toronto.

Recently the secretary general of UN Ban Ki-moon had urged Canada to make climate a part of the G-20 itinerary. Are you considering that?

The four priorities I listed for the G-20 is not an exclusive list. There are other development topics that Canada wants to talk on. Needs of children are an important priority for us. Even climate change is inevitably discussed at these international meetings.

Post-conclusion of the Copenhagen summit, some developed western countries have been thinking of imposing an environment tax or a carbon tax on emerging economies like India and China. How do you view this?

The most direct answer I can give is that Canada supports the Copenhagen agreement. Certainly it should not be used as a protectionist measure.

Which are the areas in which you would want to see more trade between India and Canada? Is Canada looking to attract any particular industry in India?

Not particularly. India is a large growing economy and it?s active in many sectors, including manufacturing. Canada has a stable strong financial system and an excellent country in which to invest in many ways. Canada is rich in resources. Energy is a major issue in the world today Canada is a major energy player in the world. On the other hand the Canadian financial system is strong and they would want to do more business in India. Overall India presents tremendous opportunity for Canadian investments including in public private partnership. And Canada also provides great investment opportunity for Indian businesses.

At the backdrop of the recession what lesson did Canada draw from it?

I think the lesson that most of us have learnt is that the talk of interdependence and interconnectedness of financial institutions isn?t just talk. It?s real. When banking system gets into trouble in one part of the world it will affect the whole world. Despite the fact that we have an excellent financial system and strong regulation, Canada is not an island hence it?s important that we work with other countries in G-20 to ensure that we have financial sector reforms and mutual assessment processes to ensure the integrity of the financial system around the world.