Diplomacy Rebooted: Canada and India Hit Refresh on Trade Talks

Image Source:ThePrint

Canada is putting its trade diplomacy into high gear on two fronts. International Trade Minister Maninder Sidhu has confirmed the renewed action on the talks with South America's Mercosur trade bloc and strengthening of ties with India—both viewed as crucial steps in Canada's trade diversification.

Key points of the minister's address

- Canada and Mercosur (Brazil, Argentina, Paraguay, Uruguay) are demonstrating each other's intentions to re-open trade negotiations, with Brazil spearheading the efforts to deepen bilateral relations
- Canada is pursuing free-trade pacts with its non-traditional partners aggressively in a bid to diversify away from the United States, which had more than C$1 trillion of two-way trade last year
- Sidhu emphasized that re-establishing diplomatic relations with India, including re-establishing High Commissioners, will be a significant step towards re-establishing dormant trade negotiations.

Diplomatic reset with India

1. The Prime Minister of India, Narendra Modi, and Canada's Mark Carney met at the G7 Summit at Kananaskis and agreed to reinstate High Commissioners and revive senior-level trade negotiations
2. The move follows nearly two years of tensions between the two nations regarding the Nijjar issue, during which there were reciprocal diplomatic expulsions
3. Both sides are now keen to restart the Early Progress Trade Agreement negotiations, with the long-term ultimate goal of a Comprehensive Economic Partnership Agreement

Why it matters

Canada's shift to emerging markets is a global trade interest realignment policy. Rebuilding confidence with India and negotiating Mercosur can result in new energy, technology, and strategic mineral opportunities.

Sources: CBC News, Reuters, Times of India, New Indian Express, Mercopress, Business Today, Indian Express, Scroll.in