India, Canada hope for early conclusion of interim trade treaty
This follows relaunch of India-Canada Comprehensive Economic Partnership Agreement. Sources say the treaty could be signed by the year end
- Jul 12, 2023,
- Updated Jul 12, 2023 1:54 PM IST
India and Canada’s trade talks remain unaffected by recent pro-Khalistan demonstrations in the north American country and the two nations are hoping for an early conclusion of the interim trade treaty. According to sources, the interim trade treaty could be signed by the year end.
This follows the formal relaunch of the India-Canada Comprehensive Economic Partnership Agreement (CEPA) negotiations in 2022. Discussions for an interim trade treaty or Early Progress Trade Agreement have been also been underway for some time.
In May, India and Canada held the sixth Ministerial Dialogue on Trade and Investment (MDTI), which was co-chaired by Commerce and Industry Minister Piyush Goyal and Mary Ng, Canada’s Minister of International Trade, Export Promotion, Small Business and Economic Development, Government of Canada.
India’s trade talks with the United Kingdom have also continued despite instances of pro-Khalistan protests in London earlier this year. Experts point out that Khalistan will impact bilateral relations but whether it would impact trade talks is a different issue.
Surendar Singh Associate Professor, FORE School of Management said that to what extent the Khalistan issue will impact trade negotiations is difficult to say. “Every country wants to protect its sovereignty and strategic interests. However, not all Sikhs in Canada support the idea of Khalistan Even the support base of Khalistan in Punjab is now very weak,” he pointed out.
Singh further said that an interim trade agreement with Canada on the lines of the India Australia interim trade agreement will be very useful. The second stage of the free trade agreement would be the CEPA, which will be critical for both countries. “However, with elections approaching, it is difficult to say whether the three FTAs of India—with Canada, UK and European countries, will be concluded by the year end,” he said.
Bilateral trade between the two countries has been on the rise. Canada-India bilateral trade in goods grew 57% year on year to C$12 billion in 2022 while bilateral services trade stood at C$8.9 billion in 2022.
A recent CII survey report revealed that 30 Indian companies have invested over C$ 6.6 billion in Canada, in addition to spending nearly C$ 700 million on R&D, or 11% of their aggregate investments. Indian companies collectively employ more than 17,000 people in Canada, and continue to create numerous employment opportunities, found the report titled “From India to Canada: Economic Impact and Engagement”.
India and Canada’s trade talks remain unaffected by recent pro-Khalistan demonstrations in the north American country and the two nations are hoping for an early conclusion of the interim trade treaty. According to sources, the interim trade treaty could be signed by the year end.
This follows the formal relaunch of the India-Canada Comprehensive Economic Partnership Agreement (CEPA) negotiations in 2022. Discussions for an interim trade treaty or Early Progress Trade Agreement have been also been underway for some time.
In May, India and Canada held the sixth Ministerial Dialogue on Trade and Investment (MDTI), which was co-chaired by Commerce and Industry Minister Piyush Goyal and Mary Ng, Canada’s Minister of International Trade, Export Promotion, Small Business and Economic Development, Government of Canada.
India’s trade talks with the United Kingdom have also continued despite instances of pro-Khalistan protests in London earlier this year. Experts point out that Khalistan will impact bilateral relations but whether it would impact trade talks is a different issue.
Surendar Singh Associate Professor, FORE School of Management said that to what extent the Khalistan issue will impact trade negotiations is difficult to say. “Every country wants to protect its sovereignty and strategic interests. However, not all Sikhs in Canada support the idea of Khalistan Even the support base of Khalistan in Punjab is now very weak,” he pointed out.
Singh further said that an interim trade agreement with Canada on the lines of the India Australia interim trade agreement will be very useful. The second stage of the free trade agreement would be the CEPA, which will be critical for both countries. “However, with elections approaching, it is difficult to say whether the three FTAs of India—with Canada, UK and European countries, will be concluded by the year end,” he said.
Bilateral trade between the two countries has been on the rise. Canada-India bilateral trade in goods grew 57% year on year to C$12 billion in 2022 while bilateral services trade stood at C$8.9 billion in 2022.
A recent CII survey report revealed that 30 Indian companies have invested over C$ 6.6 billion in Canada, in addition to spending nearly C$ 700 million on R&D, or 11% of their aggregate investments. Indian companies collectively employ more than 17,000 people in Canada, and continue to create numerous employment opportunities, found the report titled “From India to Canada: Economic Impact and Engagement”.