India Urges Canada to Restart Stalled Free Trade Negotiations

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

Relations between the two nations have been strained for over a year. The trade negotiations were officially paused by Ottawa in August 2023.

Diplomatic Tensions Halt Economic Progress

Trade talks for an Early Progress Trade Agreement (EPTA) saw several rounds. Canada decided to pause these discussions. This happened just a month before a major diplomatic rift emerged.

According to Reuters, ties soured after public allegations from Canada. The situation created a significant roadblock for economic partnership. Both countries are now working on a gradual reset of their relationship.

A Shift Towards a More Comprehensive Deal

Whenever talks resume, India is now aiming for a deeper agreement. Patnaik indicated a preference for a Comprehensive Economic Partnership Agreement (CEPA). This represents a broader scope than the initially planned EPTA.

The broader deal would cover more areas of economic cooperation. This shift signals India’s intent for a stronger long-term partnership. However, past events continue to affect mutual trust.

Patnaik stated that India does not yet consider Canada a “reliable supplier.” He cited “certain events in the past” as the reason for this reassessment. The goal is to firewall economic relations from external political forces.

The path to a strengthened India-Canada economic partnership now depends on Ottawa’s willingness to re-engage at the negotiating table. Restarting free trade talks is the crucial next step for both nations.

Thought you’d like to know

Why were India-Canada trade talks paused?

Canada officially paused the negotiations in August 2023. This was just before a major diplomatic dispute arose between the two countries over allegations made public the following month.

What type of trade deal does India now want?

India is now seeking a Comprehensive Economic Partnership Agreement (CEPA). This is a broader and more comprehensive deal than the earlier proposed Early Progress Trade Agreement.

How are diplomatic relations between the two countries now?

Relations are undergoing a gradual reset after a severe strain. The core issues that caused the rift, however, continue to cast a shadow over the partnership.

What was the main impact of the diplomatic dispute?

The dispute severely damaged trust and halted all progress on economic cooperation. It led India to question Canada’s reliability as an economic partner.

What does India want from Canada going forward?

India seeks a reliable economic partnership. Officials have stated the need to protect trade from being derailed by extraneous political forces.

Trusted Sources

Hindustan Times, Reuters, Associated Press, CTV News