Talks between Canada and India regarding a Comprehensive Economic Partnership Agreement (CEPA) – a topic of discussion for the past 15 years – may be poised for renewed progress. Negotiations had stalled following allegations made by Ottawa in 2023 concerning India’s alleged involvement in a murder on Canadian soil.
Shifting Dynamics
Analysts suggest changing global conditions are creating a potential pathway toward a trade agreement. India has recently reached trade agreements with the United Kingdom, the European Union, and has a framework in place for a deal with the United States.
Vina Nadjibulla, vice-president of the Asia Pacific Foundation of Canada, stated that Canada is currently the only G7 country without a preferential trade agreement with India.
India has also reportedly shifted its policies in recent months, becoming more open to comprehensive trade deals, creating what Nadjibulla describes as “a window of opportunity.”
Nadjibulla believes “This represents a new moment,” and that “there is an appetite on both sides.”
What’s Next?
If both countries continue to demonstrate a willingness to negotiate, formal talks regarding a CEPA could resume. A successful agreement could lead to increased trade and economic cooperation between Canada and India. However, the outcome of these potential talks remains uncertain and will depend on a variety of factors.
Frequently Asked Questions
What is a CEPA?
A CEPA is a Comprehensive Economic Partnership Agreement between two countries.
Why did talks stall in 2023?
Talks were effectively halted after Ottawa alleged India carried out a murder on Canadian soil in 2023.
Has India been actively pursuing trade deals recently?
Yes, India has reached agreements with several countries, including the UK and the European Union, and has a framework for a deal with the US.
Given these evolving circumstances, what impact might a strengthened Canada-India trade relationship have on the global economic landscape?
