Indo-Canadian Trade Talks Gain Momentum At Western Canada Summit

(MENAFN- Live Mint) Optimism is surging regarding a potential free trade pact between Canada and India following a business summit in Regina. This marks a significant turnaround after bilateral trade discussions abruptly stalled in 2023, according to various media reports.

High-Level Dialogue in Regina

The Western Canada -India Leaders Summit, hosted in Saskatchewan's capital, brought together key political figures and diplomats to discuss the proposed Comprehensive Economic Partnership Agreement (CEPA). Key participants included Scott Moe, Premier of Saskatchewan; Chris Cooter, Canada's High Commissioner to India; and Dinesh Patnaik, India's High Commissioner to Canada.

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According to Canadian broadcaster CBC News, Cooter confirmed that negotiations are actively progressing and expressed strong confidence in a breakthrough. "The free trade agreement will happen. I have no doubt," Cooter stated. Patnaik similarly verified that dialogue remains ongoing.

Premier Moe emphasized that the partnership with India is vital for Saskatchewan, noting that the resurrected talks provide a strong reason for economic optimism.

Ambitious Targets for 2030

These diplomatic insights follow recent statements from India's Commerce and Industry Minister, Piyush Goyal, who indicated that both nations aim to finalize the free trade agreement before the end of this year. Furthermore, the prime ministers of both countries have directed officials to accelerate the deal, targeting an aggressive expansion of bilateral trade from roughly USD 17 billion to USD 50 billion by 2030.

Context on the 2023 Freeze

Trade negotiations originally collapsed last year due to severe diplomatic friction. Relations soured after Canadian allegations linked Indian state agents to the assassination of Sikh separatist Hardeep Singh Nijjar in British Columbia-claims that India dismissed as "absurd" and "motivated."

Recent months have witnessed a strategic thawing of economic relations. During his Canadian visit earlier this week, Goyal credited Canadian Prime Minister Mark Carney's recent trip to India with "completely changing" how the two nations perceive one another, effectively laying the groundwork for a broader diplomatic reset. Premier Moe also praised Carney for reviving engagement, pointing to a joint trade mission to Mumbai and New Delhi earlier this year as a critical turning point.

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The summit heavily featured discussions on agricultural exports, particularly pulse crops. Reports from CBC News and Global News highlighted Premier Moe's hope that pulses would be integrated into the final trade framework. However, he clarified that their exclusion would not derail the broader deal.

Moe noted that Saskatchewan could navigate India's existing import duties on pulses even if those tariffs remain untouched by the future agreement. This issue is particularly relevant given India's decision last year to levy a 30% tariff on imported yellow peas and a 10% duty on lentils, both of which heavily impacted Canadian agricultural exporters.

Organized by the Canada-India Business Council, the high-profile summit successfully reunited diplomats, political leaders, and commercial delegates from both nations to chart a collaborative economic future.

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