Canada India Free Trade Agreement
Canadian institutional investors have already made significant commitments in India, particularly in areas such as infrastructure, real estate and finance. But the investment agreement between the two countries remains unfinished. The two negotiating groups have twice moved closer to what the Canadian side considered an agreement since the beginning of the talks in 2004, just so that the Indians would try to reopen the text of the agreement. «India wants the two to be signed together,» said Shashishekhar Gavai, the country`s high commissioner in Canada from 2008 to 2012. Although some details of the investment agreement have not yet been finalized, the Indian side has withdrawn from the table due to the date of the trade agreement, sources confirm. In 2016, trade between Canada and India was worth more than $8 billion in both directions. India`s fast-growing economy offers huge opportunities for Canadian businesses in emerging sectors such as transportation infrastructure, life sciences, clean energy technologies (for example). B the integration of renewable energy/smart grids, trapping, carbon use and storage, energy efficiency) and renewable energy, as well as in traditional sectors such as infrastructure development, natural resources, defence and security, value-added food, mining and oil and gas. Scientific and technological cooperation, innovation and educational links are also important areas in which the Canadian economy offers opportunities.
Faced with the COVID 19 pandemic and the deteriorating relations between the United States and China, which control new global concerns about supply chain security, many observers felt that India – a democracy with a population almost as large as China – is potentially a safer economic and trade partner. The Trudeau government`s advocate for «progressive trade» could continue to deal with complex negotiations that have been dragging on «progressive trade» for years, but is just another obstacle on a negotiating path already strewn with them. The scope of the agreement was a key difference. India «is not prepared to provide the kind of market access that Canada would normally expect from a trade agreement,» he said. The Indian government has not hesitated to protect politically sensitive sectors, such as agriculture, by recently imposing tariffs on pulses – Canada`s largest individual export to India – to regulate its domestic market. Their priority is labour mobility, especially for technology workers.