Global trade continues to shift, with the India-Canada dynamic spotlighting the blend of challenges and opportunities inherent to international alliances. Despite the Indian diaspora in Canada standing as the third-largest in the developed world, following the US and UK, economic exchanges between these nations have not reached their potential. Imports between both nations have teetered around the 1% mark with minor fluctuations recently.
The primary query remains: Why? The Canada-India Business Council suggests that many Canadian businesses have relegated India to the periphery, overlooking the vast market potential.
This scenario paints the backdrop for the Comprehensive Economic Partnership Agreement (CEPA) initiated in 2010. Propelled by the India-Canada CEO Round Table’s recommendations from 2008, this agreement aimed to herald a collaborative epoch. The envisioned CEPA sought to unbar markets, slash tariffs, and enhance collaboration across various sectors.
The CEPA journey faced its hurdles. Canada’s preference to intertwine labour cooperation and environmental standards met resistance from India’s conventional stance on such trade agreements. This differing view halted negotiations by 2017.
Adaptation is crucial in global partnerships. Four years post-stall, both nations are considering an Interim Agreement or Early Progress Trade Agreement (EPTA), inspired by India’s recent pact with Australia. This prospective agreement focuses on immediate benefits in sectors like agriculture, electronics, energy, and tourism, leaving contentious issues aside.
Navigating this interim agreement presents its challenges. Key sectors such as Canada’s automobile exports and India’s pharmaceutical prowess require deft handling for mutual advantages.
To summarize, India’s ongoing trade ventures with nations like Canada and Australia showcase a strategic pivot. Prioritizing immediate benefits and setting the foundation for deeper cooperation in the future seems to be the current trajectory, signalling hope for India’s upcoming trade affiliations.
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