Canada and India Revive Economic Ties: CEPA Talks Set to Boost Bilateral Trade
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The Canada-India trade corridor has finally gained momentum after months of diplomatic tension. The launch of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the two countries has been welcomed by business groups, who believe it will enhance bilateral trade. The agreement was announced after a meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on the sidelines of the G20 Leaders' Summit in Johannesburg. Despite a rocky relationship between the two countries since September 2023, some organizations, including the Canada-India Business Council (C-IBC), remained committed to the economic partnership. C-IBC President Victor Thomas expressed relief and optimism, saying, 'It's great to see diplomatic efforts translate into economic momentum, especially during a time of global trade uncertainty.' He emphasized the importance of solidifying the benefits of bilateral trade for both countries. The relationship between Canada and India hit a low point in September 2023, when Canadian Prime Minister Justin Trudeau accused Indian agents of being linked to the killing of a pro-Khalistan figure. However, business groups continued to engage, with the C-IBC convening the Insights India Forum in Toronto to discuss navigating the diplomatic tensions. In October 2024, India withdrew six diplomats from Canada, and Ottawa asked New Delhi to waive their immunity to question them in connection with violent criminal activity. In retaliation, India expelled six Canadian diplomats. Despite this, business groups remained steadfast in their commitment to the economic partnership. The Canadian Hindu Chamber of Commerce (CHCC) took a trade mission to India in January 2024 and is now poised to lead a delegation to India in January next year. The Canada-India Foundation (CIF) welcomed the renewed positivity in ties, saying, 'What we're witnessing is a relationship that was near dead just a few months ago, being revived with the speed of light.' In 2024, India was Canada's seventh-largest goods and services trading partner, with two-way trade totaling 30.9 billion Canadian dollars. The CEPA negotiations are seen as a significant step towards strengthening bilateral trade between Canada and India. Business groups believe that the agreement will help both countries benefit from complementary markets and gain a reliable trade partner. The renewed economic partnership between Canada and India is expected to bring new opportunities for businesses and entrepreneurs in both countries.
