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Source: The post is based on the article “India, Canada hit pause on FTA talks amid strain in ties after Trudeau visit” published in Indian Express on 16th September 2023
What is the News?
India-Canada talks on a Comprehensive Economic Partnership Agreement (CEPA) are expected to resume after the resolution of the issues between the two countries.
What is the issue between India and Canada?
Ties between India and Canada have been strained over the activities of pro-Khalistan groups in Canada.
India has blamed Canada for not being proactive in containing the Khalistan problem because of “vote bank politics”.
On the other hand, Canada’s PM has argued that Canada is taking steps to fight extremism without compromising freedom of expression.
What is the status of India-Canada trade ties?
India and Canada have significant trade relations.In 2022, India was Canada’s 10th largest trading partner.Since 2018,India has also been the largest source of international students in Canada.
India’s total exports to Canada added up to US$ 4.10 billion in 2022-23, up from US$ 3.76 billion in 2021-22.
India’s imports from Canada added up to US$ 4.05 billion in 2022-23, up from US$ 3.13 billion in 2021-22.
Cumulative FDI from Canada since 2000 is about US$ 4.07 billion.Over 600 Canadian companies have a presence in India.
Indian companies in Canada are active in Information Technology, software, steel, natural resources and banking sectors.
Major items of exports to Canada include gems, jewellery and precious stones, pharmaceutical products, ready-made garments, mechanical appliances, organic chemicals, light engineering goods, iron & steel articles.
On the other hand, India imports pulses, newsprint, wood pulp, asbestos, potash, iron scrap, copper, minerals and industrial chemicals from Canada.
