Where Are Canada and India on a Possible New Trade Deal?
Where do Canada and India stand on a potential new trade agreement, and how will it affect both countries? Come take a look at our article and find out.
Much of the talk in international trade circles is about the flurry of post-Brexit trade deals that the UK is attempting to negotiate, or about mega trade blocs like the CPTPP and the RCEP. However, there is another potential trade deal in Canada and India that could be very beneficial to investors, traders, and small and medium-sized enterprises, or SMEs. But where do Canada and India stand on a potential new trade agreement?
A Canada–India FTA
Officials from Canada and India have been staging ongoing talks to establish a free trade agreement (FTA) that would strengthen economic ties between the two nations. They are each looking to gain advantages for their own countries. India is likely to want greater market access to agricultural goods, pharmaceutical products, and readymade garments, as well as greater ease of movement for skilled workers, with a specific focus on creating more jobs for Indian IT professionals. Canada probably wants greater market access to agriculture products such as pulses.
A joint statement released by India and Canada in March of 2020 stated that both were hoping to finalize an interim or an early progress trade agreement, or EPTA, in the near future. Progress on this seemed to stall due to what Canada has seen as unpredictable tariff rates in India’s agriculture sector. According to the spokesperson for the High Commission of Canada, “however some challenges still exist, mostly at the local and state level, such as permit approvals, land acquisition, supply-chain unpredictability, and high tariffs. And in the agricultural sector, unpredictable tariff rates and quantity restrictions can cause uncertainty.”
Canon CR-2 AF Digital Non-Mydriatic Retinal Camera
The Value of Canada–India Trade
For the financial year of 2021-2022, Canada was India’s 36th largest trading partner. India exported goods worth $3.76 billion to Canada, while importing goods worth $3.13 billion over that 12-month period. Given that Canada was ranked only 36 on that list shows just how much trading value India adds to the global economy.
With the world’s second largest population and a growing economy, India’s economic and trade importance is no surprise. With a new, comprehensive deal in place with Canada, both countries can improve their trade standing even more. But just when that will happen remains unclear.
Join Export Portal Today!
Export Portal is a big supporter of fair international trade. Register on our site today and get the best for your business!
Comments 0