Shreya Varanasi, Pune
Canada has postponed a trade mission to India which was planned for October amid the diplomatic tensions between the two countries over the killing of a Khalistani terrorist. In a recent announcement, the spokesperson to the Canadian Trade Minister confirmed the postponement but didn’t give any reason.
Canadian Trade Minister Mary Ng and the country’s business leaders were scheduled to visit Mumbai for a trip named “Team Canada” trade mission. The trip would have focused on sectors such as information technology, agriculture and automobiles. However, according to sources, talks on a Canada-India Early Progress Trade Agreement (EPTA) have been put on hold due to political tensions.
A senior Indian government official explained that certain political developments in Canada have led India to pause negotiations with the country. However, the official assured that once the political tensions are sorted out, the talks will resume.
In March 2022, both nations had concurred to restart discussions on the Comprehensive Economic Partnership Agreement (CEPA) and explore the possibility of an interim agreement, often referred to as an Early Progress Trade Agreement (EPTA), aimed at delivering economic benefits to both parties. Until July, nine rounds of negotiations for the India-Canada CEPA/EPTA took place. These discussions covered a range of topics, including goods, trade remedies, rules of origin, procedures for determining origin, service tracks, institutional provisions, and core provisions.
The tensions between India and Canada increased rapidly after India issued a strongly worded statement after the G20 summit. At the summit, PM Narendra Modi had a ‘pull aside’ or casual meeting with only his Canadian counterpart Justin Trudeau among the many world leaders who were present. This move by the Prime Minister was interpreted as India showing its displeasure with the continuing Khalistani activities in India.
The statement released by the Ministry of External Affairs said, “They are promoting secessionism and inciting violence against Indian diplomats, damaging diplomatic premises, and threatening the Indian community in Canada and their places of worship.” The statement also emphasized that maintaining mutual respect and trust is crucial for advancing the India-Canada relationship.
In response, a press statement from Trudeau’s office noted that during his meeting with Modi, the Canadian prime minister underscored the importance of “upholding the rule of law, democratic principles, and national sovereignty.”