India Puts Onus on Canada to Restart Stalled Free Trade Agreement Talks

India has called on Canada to restart paused free trade negotiations. The statement came from India’s High Commissioner to Ottawa, Dinesh Patnaik. He emphasized that the ball is in Canada’s court.

Trade talks were halted over two years ago. The pause coincided with a major diplomatic rift between the two nations. Restarting talks is seen as crucial for rebuilding a reliable economic partnership.

Canada Must Make the First Move, Says Indian Envoy

In a recent interview with CTV, High Commissioner Patnaik was clear. He stated India is ready to discuss a deal if Canada is willing. However, he noted that Canada initiated the pause, so Canada should restart the process.

According to Reuters, negotiations for an Early Progress Trade Agreement (EPTA) saw several rounds. Ottawa suspended these talks in August 2023. The diplomatic crisis escalated just one month later.

The relationship soured after Canadian Prime Minister Justin Trudeau cited credible allegations of Indian involvement in a killing on Canadian soil. This event continues to impact bilateral trust. Patnaik expressed hope for forward movement but underscored current challenges.

Seeking a Reliable and Comprehensive Partnership

When asked if India views Canada as a reliable supplier, Patnaik’s answer was direct. He said, “Not yet.” He explained that economic partnerships must be protected from extraneous political factors.

India now aims for a more comprehensive deal. The goal has shifted from an EPTA to a Comprehensive Economic Partnership Agreement (CEPA). This indicates a desire for a deeper, more robust economic relationship once talks resume.

The path to normalized trade relations remains complex. Both sides are working to firewall economic cooperation from other diplomatic issues. The future of the trade deal hinges on rebuilding foundational trust.

The resumption of the India-Canada free trade agreement now depends on a political decision from Ottawa. A renewed partnership could significantly benefit both economies, but only if built on a foundation of reliability.

Thought you’d like to know

Q1: Why were India-Canada trade talks paused?

Canada paused negotiations in August 2023. This was shortly before a major diplomatic dispute erupted over the killing of a pro-Khalistan figure on Canadian soil.

Q2: What kind of trade deal does India want now?

India is now seeking a Comprehensive Economic Partnership Agreement (CEPA). This is a broader and deeper deal than the earlier Early Progress Trade Agreement they were discussing.

Q3: Does India consider Canada a reliable economic partner?

India’s High Commissioner stated “Not yet” in a recent interview. He emphasized the need for economic relations to be shielded from external political issues.

Q4: What is the main obstacle to resuming talks?

The primary obstacle is the ongoing diplomatic strain from the 2023 allegations. Trust needs to be rebuilt before complex trade negotiations can successfully restart.

Q5: Who is responsible for restarting the negotiations?

India’s position is that Canada paused the talks, so the onus is on Canada to restart them. India has expressed its willingness to engage if Canada is ready.