India And Canada Hit Pause On Free Trade Talks Over Political Differences

Talks between India and Canada for a Comprehensive Economic Partnership Agreement (CEPA) have been temporarily paused due to political differences, according to a senior government official. The official, who chose to remain anonymous, stated, "There were certain political developments in Canada on which India has raised its objections. India has shown strong resentment against certain political developments in Canada, and therefore, for the time being, until these political issues are settled, we have paused the talks. But the moment these political issues are sorted out, the talks will resume. So it is only a pause."

This development comes as political relations between the two countries have faced challenges in recent months, partly due to the activities of some extremists of Indian origin in Canada who have targeted Indian consulates and made allegations against Indian diplomats. Canada, in turn, has accused India of interference in its internal affairs, according to media reports.

Prime Minister Narendra Modi raised this issue during his meeting with Canadian Prime Minister Justin Trudeau on the sidelines of the G-20 summit. Trudeau, in a post-meeting press conference, emphasized Canada's commitment to defending freedom of expression and peaceful protest while also opposing violence and hatred.

Talks for a Comprehensive Economic Partnership Agreement between India and Canada began in 2010 but made limited progress. They were relaunched in March 2022, with nine rounds of talks held so far, including the latest virtual engagement in July. India's key objectives include greater access to its traditional products and more liberal visa norms for its professionals, while Canada seeks increased market access for its agriculture products and the automobile sector in India. Additionally, discussions on an investment agreement called the Foreign Investment Promotion Agreement were underway.

Despite the current pause, both countries are eager to resume talks once political differences are resolved. A senior official noted, "On the basis of ministerial guidance, work on various tracks were ongoing to complete talks as soon as possible to achieve mutually beneficial outcomes."