Canada Pushes for Free Trade Deal with India

By Pranjal Gupta

New Delhi, June 1: Canada's Minister of International Trade, Maninder Sidhu, said on Sunday that India is "destined" to become the world's third-largest economy; and he does not want Canadian businesses to miss out on a free trade agreement with it. This comes years after tension prevailed between India and Canada after the killing of Sikh separatist leader Hardeep Singh Nijjar in British Columbia.

In 2023, relations between India and Canada soured after Nijjar, an India-designated terrorist, was killed on Canadian soil on June 18. The situation escalated with former Prime Minister of Canada Justin Trudeau levelling charges against Indian government agents of being involved in the assassination.

India categorically dismissed the allegations, terming them "absurd" and "motivated." Following that, diplomats were expelled, and visas were suspended.

The tensions eased over the years, with both nations cooperating in the investigation.

Canada Minister Shows Hope for Its Exporters in India

In a social media post on X, Sidhu added that India's trajectory creates new opportunities for Canadian exporters across aerospace, AI, ICT, energy, agriculture, food processing, and advanced manufacturing.

In a post on X, he wrote: "More exports mean more Canadians producing the goods and services the world wants to buy. That is why we are focused on opening new markets for Canadian businesses, including India."

Speaking to CBC News, Sidhu underlined the urgency: "The UK has signed with India, the European Union has signed a free trade agreement with India, New Zealand has signed with India. Those countries now have an early mover advantage. I want to make sure that Canadian businesses are not left out."

On his X handle - https://x.com/i/status/2061096019207537055 - he decribed negotiations as moving " really well".

Western Canada-India Leaders Summit

The optimism was echoed at the Western Canada-India Leaders Summit in Regina, where Saskatchewan Premier Scott Moe, Canada's High Commissioner to India Chris Cooter, and India's High Commissioner to Canada Dinesh Patnaik met with business delegations to discuss bilateral ties and the proposed Comprehensive Economic Partnership Agreement (CEPA). Cooter expressed confidence a deal could be reached before year's end: "The free trade agreement will happen. I have no doubt."

The summit was organised by the Canada-India Business Council and followed remarks by India's Commerce and Industry Minister Piyush Goyal, who said both countries are aiming to conclude negotiations by the end of 2026. Goyal also credited Canadian Prime Minister Mark Carney's recent visit to India with having "completely changed" the tenor of the relationship and setting the stage for a broader reset.

Trade Talks With Canada Halted After Sikh Separatist Death

Trade talks had stalled in 2023 after relations soured over Canadian allegations linking Indian agents to the killing of Sikh separatist Hardeep Singh Nijjar in British Columbia - allegations India dismissed as "absurd" and "motivated."

Agricultural trade also featured in the Regina discussions. Moe said he hoped pulse crops would be included in any final agreement, though he indicated their absence wouldn't be a - noting Saskatchewan could work around existing Indian import duties even if they remained. India imposed a 30% levy on yellow peas and a 10% duty on lentils last year, affecting Canadian exports.

(With Inputs from PTI)