India paused trade talks with Canada over Khalistan row after Trudeau G20 visit

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India has already paused negotiations for a comprehensive free trade agreement (FTA) with Canada, which is not a “strategically” important country for nation’s commodities’ requirements as bilateral merchandise trade between the two countries was a mere $8 billion in FY23, with exports and imports almost evenly balanced, two officials said.

Canada is allowing its land to be used by subversive elements against India. However, since India’s imports from the country can easily be substituted from any other friendlier supplier in the country’s national interest, New Delhi does not have to solely rely on Canada for key commodities, the officials who asked not to be named said.

“Even our bilateral trade is not significant,” one of them said. In 2022-23, India exported merchandise worth $4.11 billion to Canada and imported goods, such as coal, fertiliser, pulses, pulp and aluminium worth $4.17 billion, according to official data.

India’s exports to Canada fell year-on-year by over 20% to $1.24 billion in the first four months of current financial year (FY24). Imports also contracted by 6.39% in the same period at $1.32 billion, according to official data.

India exports pharmaceuticals, iron products, telecom equipment, garments, marine products, auto components, iron and steel to Canada.

HT on September 16 reported that New Delhi suspended free-trade talks with Canada as Ottawa was encouraging subversive elements who are carrying out anti-India activities on its soil. The development came just days after Prime Minister Narendra Modi conveyed to his counterpart Trudeau strong concerns about anti-India elements promoting secessionism during Canadian PM’s India visit earlier this month.

India-Canada FTA negotiations were progressing well before the pause. The ninth round was held from July 12 to July 21 in a virtual format. The two countries had, so far, discussed matters related to goods, trade remedies, rules of origin, origin procedures, services, institutional and core provisions. The previous and the sixth ministerial dialogue on trade and investment (MDTI) was held on May 8 in Canada.

India exports pharmaceuticals, iron products, telecom equipment, garments, marine products, auto components, iron and steel to Canada.

HT on September 16 reported that New Delhi suspended free-trade talks with Canada as Ottawa was encouraging subversive elements who are carrying out anti-India activities on its soil. The development came just days after Prime Minister Narendra Modi conveyed to his counterpart Trudeau strong concerns about anti-India elements promoting secessionism during Canadian PM’s India visit earlier this month.

India-Canada FTA negotiations were progressing well before the pause. The ninth round was held from July 12 to July 21 in a virtual format. The two countries had, so far, discussed matters related to goods, trade remedies, rules of origin, origin procedures, services, institutional and core provisions. The previous and the sixth ministerial dialogue on trade and investment (MDTI) was held on May 8 in Canada.

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