Silent on Stalled Trade Talks: Trudeau's Stance on Negotiations with India

10 Sep, 2023

Silent on Stalled Trade Talks: Trudeau's Stance on Negotiations with India

Ottawa's decision to halt trade negotiations with India just before the G20 summit in New Delhi has left many puzzled. The move was confirmed by India's envoy to Canada, who disclosed that Ottawa had requested the pause "within the last month." However, the reasons behind this pause remain undisclosed, with neither the International Trade Minister nor the Prime Minister shedding light on the matter.

Prime Minister Justin Trudeau, speaking from Singapore, was pressed twice to provide an explanation, but he opted to remain tight-lipped, stating, "We know the negotiations around free trade are long and complex, and I won't say any more."

These developments came shortly after Trade Minister Mary Ng commented that Canada is currently in the process of "taking stock" regarding the trade talks. Ng emphasized that trade agreements are intricate and involve numerous factors, and the current phase involves evaluating the progress made.

Notably, Canada and India initiated discussions for a comprehensive trade deal back in 2010, but these plans were abandoned in 2017. Since 2022, both nations have shifted their focus to talks about a Comprehensive Economic Partnership Agreement, which would be limited to specific industries.

Goldy Hyder, the CEO of the Canada Business Council, suggested that the pause presents an opportunity for the Canadian government to reassess the potential agreement's content. He framed it as a chance to identify areas of consensus and areas where Canada may be overreaching. However, he stressed the importance of Canada returning to the negotiating table, regardless of the undisclosed reasons behind the pause.

During his time in the Indo-Pacific region, Prime Minister Trudeau provided updates on trade negotiations with the ASEAN trading bloc. He expressed hope that a deal with ASEAN would be finalized before the end of 2025. Additionally, Trudeau aimed to complete a separate agreement with Indonesia by the end of 2024, marking roughly three years since the talks began. If successful, these two free trade agreements would grant Canada access to a market comprising over 660 million people.

Trudeau also highlighted the growing emphasis on supply chain resiliency and diversity following the lessons learned during the pandemic. He emphasized the need for Canada to engage with Southeast Asia and for Southeast Asian economies to consider countries like Canada.

Wayne Farmer, the president of the Canada-ASEAN Business Council, emphasized the importance of continued interaction between senior government officials and private sector leaders in promoting Canadian businesses and products in the Indo-Pacific region.

Regarding the upcoming G20 summit in India, Prime Minister Trudeau is scheduled to arrive without an official bilateral meeting with Indian Prime Minister Narendra Modi. In contrast, Australia and the United States have announced meetings with Modi, while British Prime Minister Rishi Sunak is set to engage with the Indian leader before the G20. Sunak plans to discuss a U.K.-India Free Trade Agreement, which Indian officials hope to finalize by the year's end. When questioned about Canada-India relations and the possibility of a meeting with Modi, Trudeau indicated that plans were still being worked out but assured that important conversations would take place during his visit.