It sure would be nice if Canada could boost its GDP by $8 billion, wouldn’t it? Well, what if we told you there was one way to do exactly that?
What happened: A comprehensive free trade agreement with India would be a mega-win for the Canadian economy, according to a new study commissioned by business groups backing a deal.
Catch-up: Canada and India have been trying to negotiate a trade agreement since 2010, but haven’t been able to reach a deal.
- Political differences, conflicting negotiating styles, and different trade approaches have contributed to sinking deals, as India’s a notoriously fickle trading partner.
- Canada is currently India’s 13th largest trade partner, but has slipped in the rankings in recent years, according to the study.
But India is ready to talk trade again, relaunching negotiations in March after a five-year hiatus and dropping most tariffs on lentil imports (which Canada supplies a lot of).
Why it matters: India is likely to be the fastest-growing major economy this year, with projected growth of 8%, according to the IMF, and the world’s fifth largest by 2027.
As tensions between Western countries and China grow, Canada, Australia, and the UK, among others, recognize the opportunity India’s burgeoning economy presents in developing a more reliable trade partnership in the region.