India and Canada to Reassess Trade Relationship, Potential Deal to Resume Next Year

India and Canada are set to reassess their trade relationship this year, with experts anticipating a potential economic partnership to be resumed next year. The bilateral trade space has been dominated by the impact of US President Donald Trump's tariff threats. Despite previous rounds of negotiation towards an Early Progress Trade Agreement being paused in August 2023, Canada and India are expected to engage in stocktaking and discussions on specific sectors this fall. The two countries have been cautious in their approach, with experts suggesting a gradual re-engagement in bilateral relations, including resumption of trade negotiations, to be in line with political signals from both Prime Ministers and key ministers.

Key Takeaways:

• Former Indian High Commissioner to Ottawa, Ajay Bisaria, believes there is no big rush to resume trade negotiations with Canada, and instead, the two countries will engage in a stocktaking situation.
• Vina Nadjibulla, vice-president for research and strategy at the Asia-Pacific Foundation of Canada, suggests that the two countries will discuss specific sectors like artificial intelligence, critical minerals, LNG, and auto parts before resuming formal trade negotiations.
• Nadjibulla believes that a political commitment to resume trade negotiations and a launch of a stocktaking process may be feasible this year, given the changed global trade landscape and economic calculus of both countries.
• The Indo-Canadian Business Chamber (ICBC) suggests concentrating on niche sectors that are important for both governments, such as artificial intelligence, critical minerals, LNG, and auto parts.
• The appointment of High Commissioners in each other's capitals and the reappointment of Canadian consulates in India are necessary steps before discussions on a trade agreement can be resumed.
• ICBC's CEO Nadira Hamid suggests that the two countries should focus on cooperation in specific sectors before resuming dialogue on a trade agreement.
• Both India and Canada have been adjusting to the new global trade landscape, with the ICBC emphasizing the importance of cooperation in niche sectors.

Statistics:

• There were several rounds of negotiation towards an Early Progress Trade Agreement between India and Canada before being paused in August 2023.
• The timeframe for resumed trade negotiations is uncertain, but experts suggest it may be feasible this year, given the changed global trade landscape and economic calculus of both countries.
• The Indo-Canadian Business Chamber has organized roundtable discussions in Ottawa and Toronto, featuring officials from both governments, to focus on cooperation in specific sectors.
• The appointment of High Commissioners in each other's capitals and the reappointment of Canadian consulates in India will be necessary steps before discussions on a trade agreement can be resumed.
• The number of rounds of negotiation between India and Canada is unclear, but experts suggest that the framework for a trade deal has changed and needs to be reflected in any resumed negotiations.

Sources:

• "Experts believe India and Canada will reassess trade relationship this year" by HT Digital Content Services with permission from Hindustan Times.
• Quote from Vina Nadjibulla, vice-president for research and strategy at the Asia-Pacific Foundation of Canada.
• Quote from Ajay Bisaria, former Indian High Commissioner to Ottawa.
• Quote from Nadira Hamid, CEO of the Indo-Canadian Business Chamber (ICBC).
• News article from the Hindustan Times on July 2023.