Apex chambers welcome launch of economic partnership agreement negotiations between India and Canada

Toronto: Organisations that feature remained fighting(a) in the India-Canada merchandise corridor despite the stony human relationship between the two countries, have expressed relief and optimism that the renewal of ties will enhance the economic partnership.

The relationship gained momentum on Sunday as the launch of fresh negotiations towards a comprehensive economic partnership agreement (CEPA) was announced after the meeting between Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney on the margins of the G20 Leaders’ Summit in Johannesburg.

Despite diplomatic and political ties cratering since September 2023, some groups remained committed to the economic relationship. Among them is the Canada-India Business Council (C-IBC).

Its president and CEO Victor Thomas said, “It is great to see the diplomatic reset progressing into economic momentum, at a time of global trade uncertainty – what an opportunity for Canada and India to complete a Comprehensive Economic Partnership Agreement.”

“We are now back at the trade table and ready to solidify the benefits of bilateral trade for both countries. Now, more than ever, gaining a reliable trade partner will allow both countries to benefit from complementary markets,” he added.

Ties between the countries cratered on September 18, 2023, when then Canadian PM Justin Trudeau stated in the House of Commons that there were “credible allegations” of a potential link between Indian agents and the killing of pro-Khalistan figure Hardeep Singh Nijjar three months earlier in Surrey, British Columbia. India described those accusations as “absurd’ and “motivated”.

However, C-IBC continued its engagement, convening the Insights India Forum in Toronto November 10, 2023 “to discuss how business can navigate in the wake of rising diplomatic tensions between Canada and India”.

Matters worsened a year later, as in October 2024, India withdrew six diplomats and officials from Canada after Ottawa asked New Delhi to waive their immunity so they could be questioned in connection with violent criminal activity in the country. In retaliation, India expelled six Canadian diplomats.

C-IBC went ahead with its Annual Mumbai Business Forum in November 2024, stating it remained “steadfast in our belief that business must continue to drive growth and opportunity in the economic corridor”.

In fact, it was at C-IBC’s India Insights Forum in October this year, that High Commissioner Dinesh Patnaik signalled the two countries could pivot to CEPA negotiations rather than revert to talks for an Early Progress Trade Agreement (EPTA). Negotiations over the EPTA was “paused” by Ottawa in August 2023, just days prior to Trudeau made his accusations in Parliament.

Months after the 2023 collapse in ties, the Canadian Hindu Chamber of Commerce (CHCC) took a trade mission to India, in January 2024. It travelled across states. It is now poised to be the first chamber to take a delegation to India, in January next year, following the reset and resultant renewal after Carney assumed charge as Canada’s PM in March this year.

“My heart is truly full as we witness Canada-India relations rising again with new energy and purpose,” Hemant Shah, chair of CHCC’s newly-formed Canada-India Trade Committee, said.

“At CHCC, our Trade Development Committee will work with passion to build strong B2B partnerships, mentor and inspire entrepreneurs, and support the efforts of the Canadian Government’s Trade Commissioner Service and Provincial trade bodies,” he added.

The Canada-India Foundation (CIF) also welcomed the positivity in ties. “What we are witnessing here is a relationship that was near dead just a few months ago, being revived with the speed of light. What the leaderships in both countries have achieved together in just a matter of months needs to be applauded. It takes courage and vision to bring about such a complete turnaround,” CIF’s chair Ritesh Malik said.

Activities of these groups played a part in ensuring bilateral trade wasn’t held hostage to political hostility. In 2024, India was Canada’s seventh-largest goods and services trading partner, with two-way trade coming to 30.9 billion Canadian dollars.

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