Canada temporarily suspends trade treaty talks with India
In an unexpected move, Canada has reportedly paused its ongoing trade treaty talks with India just three months after both countries expressed intentions to finalize an initial agreement this year. While the reasons behind the pause remain unclear, the move comes days before Canadian Prime Minister Justin Trudeau heads to India for the G20 Summit in New Delhi next week.
Why does this story matter?
It is worth noting that Canada and India have been talking about a comprehensive economic partnership pact on and off since 2010. They were formally relaunched last year to increase trade, expand investment, and establish a dispute resolution mechanism. As per Reuters, a top Indian official last month revealed New Delhi's plans to hold bilateral free trade discussions with Canada and other countries on the sidelines of the G20 Summit.
India's envoy to Canada confirms development
According to the news agency Bloomberg, India's High Commissioner to Canada, Sanjay Kumar Verma, confirmed the report in an emailed statement. "The Canadian side has suggested a 'pause' to the ongoing fast-paced negotiations on an early-progress trade agreement with India," he wrote. "Though I am not aware of exact reason(s), most likely, the 'pause' will allow more consultations with the stakeholders," he added.
Government official reveals possible reason behind halt
A government source speaking to reporters revealed the reason behind the sudden "pause." While keeping their identity a secret, the official cited the complex and long processes of the trade negotiations as one of the primary reasons behind the halt from the Canadian side, Reuters reported. Meanwhile, neither Trudeau's office nor Canadian Trade Minister Mary Ng's office commented on the matter.
Know about G20 Summit in Delhi
On the other hand, New Delhi is gearing up to host the G20 Summit, which will bring together G20 member nations and other guest countries to discuss topics like climate change, global economic cooperation, and other international issues. The high-profile meeting will be held on September 9 and 10 at the ITPO Convention Centre's Bharat Mandapam in Delhi's Pragati Maidan.
