India-Canada Talks for Trade Agreement to Resume After Resolution of Political Issues, Says Official

Negotiations for a free trade agreement between India and Canada will resume after the resolution of political issues between the two countries, a senior official said on Friday. On September 2, Canada announced that it has paused the negotiations for the agreement.

“There were certain political developments in Canada on which India has raised its objections. India has shown a strong resentment against certain political developments in Canada and, therefore, for the time being, till these political issues are settled, we have paused the negotiations,” the official said.

“But the moment these political issues are sorted out, the talks will resume. So, it is only a pause,” the official added.

On September 10, Prime Minister Narendra Modi conveyed to his Canadian counterpart Justin Trudeau India’s strong concerns about the continuing “anti-India” activities of extremist elements in Canada that were promoting secessionism, inciting violence against its diplomats and threatening the Indian community there. Over half a dozen rounds of talks have been held between the countries on the trade pact so far.

In March last year, the two countries relaunched negotiations for an interim agreement, officially dubbed as Early Progress Trade Agreement (EPTA). In such agreements, two countries significantly reduce or eliminate customs duties on the maximum number of goods traded between them. They also liberalise norms for promoting trade in services and attract investments.

Indian industry was looking at duty-free access for products like textiles and leather besides easy visa norms for the movement of professionals. Canada has interests in areas like dairy and agricultural products. The bilateral trade between the countries has increased to US$8.16 billion in 2022-23 from US$7 billion in 2021-22.