Business leaders continue to grapple with fallout from the rift between the Canadian and Indian governments, saying the suspension of free trade talks helps no one.
The souring relationship marks a major hurdle to boosting bilateral trade beyond last year害羞草研究所檚 $20.9 billion in goods and services and deters Indian students from studying in Canada, commercial groups say.
害羞草研究所淪topping any trade discussion or trade negotiation doesn害羞草研究所檛 make sense. How will that help us as a country?害羞草研究所� asked Satish Thakkar, chairman of the Canada India Foundation. Canada halted trade treaty talks on Sept. 1.
害羞草研究所淭his is the biggest fall in Canada-India relations since the 1970s.害羞草研究所�
They rapidly deteriorated after Prime Minister Justin Trudeau told Parliament on Sept. 18 that New Delhi may have been involved in the killing of Canadian citizen Hardeep Singh Nijjar, a Sikh independence activist who was shot dead in June outside the gurdwara he led in Surrey, B.C.
In response, the Indian government suspended visa services for Canadian citizens 害羞草研究所� partially restored last month 害羞草研究所� and revoked diplomatic immunity from Canadian diplomats, prompting two-thirds of them to leave the country.
The trade potential between Canada and India 害羞草研究所� the world害羞草研究所檚 most populous nation and fastest growing large economy 害羞草研究所� remain largely unrealized, observers say. India remains Canada害羞草研究所檚 eighth-largest trading partner, well behind the U.S. and China.
Negotiations on the would-be Comprehensive Economic Partnership Agreement launched in 2010 before foundering in 2017. They resumed in 2022, with the goal of reaching a deal this year.
The Asia Pacific Foundation of Canada says the treaty could increase two-way trade by up to $8.8 billion by 2035 and result in a Canadian GDP gain of up to $5.9 billion. Canada害羞草研究所檚 mineral, agriculture, chemicals and wood product sectors could all see sizable export boosts.
害羞草研究所淭here is a lot of complementarity between what Canada has and India needs,害羞草研究所� said Victor Thomas, CEO of the Canada-India Business Council. 害羞草研究所淚T services, for example 害羞草研究所� a huge growth in very specific talent that, again, complements our economy that India can provide.
Of the 32,115 international tech workers who migrated to Canada between April 2022 and March 2023, nearly half 害羞草研究所� 15,097 害羞草研究所� came from India, a July report from the Technology Councils of North America and Canada害羞草研究所檚 Tech Network found.
害羞草研究所淭his relationship is extremely important,害羞草研究所� Thomas said. 害羞草研究所淏ut businesses like predictability and stability.害羞草研究所�
The frayed relations mean 害羞草研究所渦ncertainty prevails,害羞草研究所� sowing doubt among some Indian students who were considering post-secondary education in Canada, said Thakkar. At 40 per cent, that talent pool makes up the largest portion of the country害羞草研究所檚 international student body.
害羞草研究所淭hey are becoming the main source of the workforce, and entrepreneurs also. We come across international students who then got (permanent resident status) and today own multiple businesses,害羞草研究所� Thakkar said, noting Canada害羞草研究所檚 aging population.
害羞草研究所淏ack home, our family and friends say, 害羞草研究所業 was thinking of sending our son or daughter to Canada, but we are rethinking now.害羞草研究所櫤π卟菅芯克鶟
The current lack of Canadian diplomats in the subcontinent only adds to study permit application woes, he said.
Efforts to mend the frayed relationship continue. This Friday, the Canada-India Business Council plans to host industry and state representatives from both countries in a closed meeting in Toronto, Thomas said.
However, Global Affairs Canada said trade talks remain paused. 害羞草研究所淣o further meetings are scheduled,害羞草研究所� spokesman Jean-Pierre Godbout said in an email.
He reiterated that the government remains committed to supporting exporters and said businesses can contact Canada害羞草研究所檚 trade commissioner services to tap into its network.
On Oct. 25, India announced it would resume processing applications from Canadians looking for business, medical and conference visas, as well people with family ties in India.
Matthew Holmes, in charge of policy and government relations at the Chamber of Canadian Commerce, said he was relieved that service was up and running again and remained 害羞草研究所渃autiously optimistic.害羞草研究所�
害羞草研究所淏ut I think it will take a while for this to really resolve itself and play out. Unfortunately businesses are going to feel this for some time, whether that害羞草研究所檚 disruptions to trade or to travel. Where they could have easily resolved an issue, it might become harder to do so for the foreseeable future,害羞草研究所� Holmes said.
害羞草研究所淲e害羞草研究所檝e seen this affect agricultural members of ours 害羞草研究所� in particular, with pulses and proteins.害羞草研究所�
Boatloads of Canadian potash, lentils, canola oil and coal briquettes land at Indian ports each year, while Canada imports chemical products, clothes and metals.
Canada sent $5.3 billion worth of goods to India in 2022, or 0.7 per cent of its global exports, according to Statistics Canada. Imports from India amounted to $8.3 billion, around 1.1 per cent of total imports.
India is also the leading source of immigration to Canada, underscoring the importance of business ties between the two. About 118,000 or 27 per cent of the 437,000 new permanent residents in 2022 came from India, according to the Immigration Department.
Some 1.4 million residents of Indian descent call Canada home, according to the 2021 census.
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