India has suspended free-trade talks with Canada as Ottawa is encouraging subversive elements who are carrying out anti-India activities on its soil, two officials said on Friday, adding that the talks will resume only after the impasse is resolved.

“New Delhi will not engage in trade talks with any country that allows subversive activities against India or its people,” one of the officials quoted above said. The other official said India has raised objections to certain political developments in Canada and “paused” negotiations for a free trade agreement (FTA) until the matter is resolved. Both requested anonymity.

The development came just days after Prime Minister Narendra Modi conveyed to his counterpart Justin Trudeau strong concerns about anti-India elements promoting secessionism from Canadian soil and inciting violence against diplomats, on the sidelines of the G20 summit.

India was negotiating an interim Indo-Canada Early Progress Trade Agreement (EPTA), which would have finally culminated into a Comprehensive Economic Partnership Agreement (CEPA) or a wide-ranging FTA. After the relaunch of FTA negotiations between India and Canada in March 2022, nine rounds of negotiations were already held till July this year.

“This is new India with a vibrant democracy, a robust economy and a strong leadership. It has proven it at the G20 summit earlier in this month. It was amply made clear to Canada, and for that matter any other country that trade talks and extremism will not go together,” the second official said referring to the unanimous Delhi Declaration at the G20 Leaders’ Summit on September 9-10. Trudeau also attended the event.

Modi registered New Delhi’s concerns in the strongest words to Trudeau on the sidelines of the G20 summit in New Delhi on September 10, the official said. According to a statement issued by the Prime Minister’s Office after the meeting, PM Modi conveyed New Delhi’s strong concerns about continuing anti-India activities by extremist elements in Canada.

“They [referring to the subversive elements] are promoting secessionism and inciting violence against Indian diplomats, damaging diplomatic premises, and threatening the Indian community in Canada and their places of worship. The nexus of such forces with organised crime, drug syndicates and human trafficking should be a concern for Canada as well,” the statement had said.

The PM also mentioned that a relationship based on mutual respect and trust is essential for the progress of India-Canada relationship, the statement had added.

India-Canada FTA negotiations were progressing well before the pause. The ninth round was held from July 12 to July 21 in a virtual format. The two countries had, so far, discussed trade matters related to goods, trade remedies, rules of origin, origin procedures, services, institutional and core provisions. The previous and the sixth ministerial dialogue on trade and investment (MDTI) was held on May 8 in Canada. The bilateral trade between the two countries stood at $8.16 billion in 2022-23.

Culled from Hindustan Times