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India to grant Canada requested pause in trade talks

Talks have been progressing rapidly after a 5-year hiatus
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High Commissioner of India to Canada Sanjay Kumar Verma speaks to reporters during an interview in Ottawa on Thursday, August 31, 2023. THE CANADIAN PRESS/ Patrick Doyle

India鈥檚 envoy to Canada says Ottawa has tapped the brakes on trade negotiations, just before Prime Minister Justin Trudeau heads to New Delhi.

Indian High Commissioner Sanjay Kumar Verma said Ottawa sought a pause 鈥渨ithin the last month鈥 to ongoing talks for an Early Progress Trade Agreement.

鈥淭he Canadian side has requested that, let鈥檚 take a pause; let鈥檚 see what can be done further, and then we鈥檒l restart,鈥 Verma said, in a wide-ranging interview ahead of next week鈥檚 G20 summit in New Delhi.

鈥淚鈥檓 not sure what the reason is. But there is an honest request from the Canadian side, and we have no reason not to accept it.鈥

Since March 2022, the two countries have been negotiating a deal that would be restricted to certain industries, instead of spanning the entire economy.

The talks follow a five-year hiatus. Both countries had entered negotiations in 2010 for a comprehensive deal, but they abandoned the plans in 2017.

Verma said there has been an intense pace of negotiations, which he says reflects the earnestness of both nations wanting closer economic ties.

鈥淗aving 10 rounds in 13 months is a huge deal,鈥 he said. 鈥淪ometimes it progressed so fast that stakeholders were not able to imbibe the outcome.鈥

Verma is a former trade negotiator. He said it鈥檚 possible Ottawa sought time to better inform industry groups of the proposed deal.

鈥淥ur understanding is that there needs to be 鈥 now that we are coming closer to the end of the negotiations 鈥 probably more consultations with the stakeholders,鈥 he said, while stressing 鈥渢hat鈥檚 my conjecture.鈥

Trade Minister Mary Ng and Global Affairs Canada have been asked to comment.

In May, Ng said it was 鈥渘ot going to be years鈥 by the time both sides sign a deal. Her comments came during a visit by her Indian counterpart, Commerce Minister Piyush Goyal.

At the time, the two issued a statement saying they seek 鈥渆nhanced co-operation鈥 in the fields of 鈥渁gricultural goods, chemicals, green technologies, infrastructure, automotive, clean energy, electronics and minerals and metals.鈥

Nadir Patel, Canada鈥檚 former high commissioner to India, said in an interview that trade between the two countries will rise no matter what, but a trade deal would be a boost for both economies.

鈥淚f you鈥檙e a Canadian business leader, India is a place that you want to be,鈥 said Patel, in an interview ahead of Verma鈥檚 comments.

鈥淭here鈥檚 certainly a will on both sides to conclude a deal. But any deal has to be a win-win,鈥 said Patel, a senior strategic adviser with Norton Rose Fulbright Canada.

Ng is set to visit India in October for a Canadian trade mission.

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