Canada-India trade pact gains momentum at leaders summit
What's the story
The Western Canada-India Leaders Summit held in Regina, Saskatchewan, has given a major boost to the prospects of a free trade agreement (FTA) between Canada and India. The summit was attended by Saskatchewan's Premier Scott Moe, Canada's High Commissioner to India Chris Cooter, and India's High Commissioner to Canada Dinesh Patnaik. The event focused on the proposed Comprehensive Economic Partnership Agreement (CEPA), with all three leaders expressing optimism about its progress.
Diplomatic optimism
'FTA will happen, have no doubt'
Cooter confirmed that negotiations for the FTA are underway and expressed high hopes for a successful outcome. "The free trade agreement will happen. I have no doubt," he said, as per CBC News. Patnaik also confirmed that talks are still ongoing, further fueling optimism about the potential trade pact. Premier Moe stressed the importance of this partnership with India for Saskatchewan's economy.
Trade targets
Aim to boost bilateral trade to $50 billion by 2030
The optimism from the summit comes on the heels of India's Commerce and Industry Minister Piyush Goyal's announcement that both countries are targeting to finalize the FTA by the end of this year. The prime ministers of both nations have also instructed officials to expedite negotiations, with an ambitious goal to boost bilateral trade from around $17 billion to $50 billion by 2030.
Diplomatic strain
Trade talks stalled in 2023 due to diplomatic rift
The trade talks had hit a roadblock in 2023 amid serious diplomatic tensions. The rift was caused by Canadian allegations of Indian state involvement in the killing of Sikh separatist Hardeep Singh Nijjar in British Columbia. India rejected the allegations as "absurd" and "motivated." However, recent months have seen a thawing of economic relations between the two countries.
Diplomatic reset
Thawing of relations attributed to Canadian PM Mark Carney's visit
During his recent visit to Canada, Goyal credited Canadian Prime Minister Mark Carney's trip to India for changing the perception of both countries toward each other. This has set the stage for a wider diplomatic reset. Premier Moe also praised Carney for reviving engagement, citing a joint trade mission to Mumbai and New Delhi earlier this year as a turning point in their relationship.
Trade challenges
Agricultural exports discussed at summit
The summit also saw discussions on agricultural exports, especially pulse crops. Premier Moe expressed hope that pulses would be included in the final trade agreement but clarified their exclusion wouldn't derail the broader deal. He also said Saskatchewan could navigate India's existing import duties on pulses even if those tariffs aren't removed by future agreements.