In a sudden and unexpected development, Canada has announced that it has paused negotiations on a proposed trade treaty with India. This announcement comes just three months after both nations expressed their intention to secure an initial agreement within the year.
The talks between Canada and India regarding a comprehensive economic partnership agreement date back to 2010, with formal relaunching occurring just last year. However, it appears that the negotiations have hit a roadblock, leading to the decision to temporarily halt discussions.
A government official, who spoke on the condition of anonymity, addressed reporters regarding this decision, stating;
"Trade negotiations are long, complex processes. And we've paused to take stock of where we are."
However, no further details regarding the specific reasons for the pause were provided.
Sanjay Kumar Verma, India's envoy to Canada, confirmed the request for a pause, revealing that Ottawa had made the request within the last month. However, no official explanation for the request was provided by the Canadian side.
In May of 2023, both India and Canada publicly expressed their goal to finalize an initial agreement within the year. This agreement was meant to not only boost trade between the two countries but also to expand investment opportunities while establishing mechanisms to address potential disputes.
Just last month, a senior Indian trade official announced that India intended to conduct bilateral free trade talks with Canada and other nations on the sidelines of the upcoming G20 summit. This summit is set to take place in the near future, and Canadian Prime Minister Justin Trudeau is expected to attend.
Neither the office of Prime Minister Justin Trudeau nor the office of Trade Minister Mary Ng had provided any immediate comments or further details on the decision to pause the trade treaty negotiations.
The unexpected pause in talks between Canada and India raises questions about the future of their economic relationship and the potential impact on trade and investment between the two nations.
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