The current diplomatic strain between Canada and India has halted optimistic negotiations on the Indo-Canadian trade deal, impacting commercial and economic cooperation. The Early Progress Trade Agreement (EPTA) negotiations, a prelude to the Comprehensive Economic Partnership Agreement (CEPA), are now on pause, raising concerns about the broader economic fallout. Canada ranks as India’s 35th largest trading partner, with bilateral trade reaching C$12 billion in 2022. The balanced trade relationship, primarily in goods like coal and pharmaceuticals, faces uncertainties due to the paused CEPA. Additionally, Canada’s substantial investment in India and the significant number of Indian students in Canada add complexity to the potential economic repercussions.
Diplomatic Tensions Cast Shadows on Indo-Canadian Economic Landscape
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