Question Period Note: BILATERAL AGRICULTURAL TRADE WITH INDIA

Q1 – Given the potential for agriculture and agri-food in the region, when will the postponed Team Canada Trade Mission to India be rescheduled? Q2 – What is the impact of the postponement on Canada’s bilateral trade relations with India?

R1 - As part of Canada’s Indo-Pacific Strategy, Canada is committed to renewed Team Canada Trade Missions, which start in October in Japan.
The Government of Canada remains committed to supporting Canadian agricultural companies in the region through continued engagement in market development initiatives, as well as through the anticipated Indo-Pacific Agriculture and Agri-Food Office, which will open in Manila in the coming months. R2 - The Government of Canada anticipates that postponement of the Team Canada Trade Mission to India will have limited impact on our bilateral engagement on agriculture with India.
We remain committed to advancing our priority agriculture market access issues with India, including stable and predictable access for pulses.

Agriculture exports to India
India is an important market in the Indo-Pacific region for Canadian exports of agri-food, and seafood products. India is Canada's 21st largest export market for agri-food and seafood products in the world. In 2022, Canadian agri-food and seafood exports to India totaled CAD $418.1 million, down from a peak of $1.5 billion in 2015, and accounted for 8.0% of the value of Canada’s total exports to India. Top exports in 2022 included: dried lentils ($393 million), lactose and lactose syrup ($6.6 million) and pet food ($3.2 million).

In 2022, Canada imported CAD $996.9 million of agri-food and seafood products from India, representing an increase of 24.9% from the previous year. Top five imports were frozen shrimps and prawns (19.5%), semi-milled rice (13.7% share), shrimps and prawns, prepared or preserved (5.2% share), soy beans (4.5% share) and mucilage’s and thickeners derived from locust beans (3.0% share).

Pulse exports to India
Canadian pulse exports are a key aspect of the Canada-India bilateral trade relationship, helping Canadian farmers, while contributing to India’s growing need for safe and nutritious agri-food products. However, Canada is deeply concerned by India’s continued efforts to restrict imports of pulses through several trade-restrictive measures, including high tariffs on lentils and import restrictions on dry peas.

For several years, Canada has been seeking India’s agreement to allow Canadian pulses to be imported on the basis of Canada’s systems approach to pest management in lieu of India’s requirement for fumigation. Canada and India reached an agreement in March 2023 to implement a trial period. The pulse trial period is currently underway, with lentils being the first commodity under the trial. Canada remains committed to advocating for the pulse industry.

Team Canada Trade Mission (TCTM) to India
Team Canada Trade Missions (TCTMs) are Minister-led, enhanced trade missions targeting the Indo-Pacific region and tied to Canada’s Indo-Pacific Strategy (IPS).

These missions prioritize innovation sectors and seek to open doors for Canadian companies, from large and diverse businesses to small companies led by groups traditionally under-represented in trade (e.g. women, Indigenous Peoples, and youth).
The TCTM to India, led by Minister Ng, was scheduled to take place from October 9-13, 2023, with visits to Mumbai and other cities.
In light of recent geopolitical events, the TCTM to India has been postponed to an undetermined date.

Canada-India Early Progressive Trade Agreement (EPTA)/Comprehensive Economic Partnership Agreement (CEPA) Negotiations
In 2022, Canada and India re-launched Canada-India Comprehensive Economic Partnership Agreement (CEPA) negotiations. In pursuit of that goal, both Ministers agreed to pursue an Early Progress Trade Agreement (EPTA), as a transitional step towards the CEPA. Nine rounds of negotiations have been held since 2022.
In late August 2023, Global Affairs Canada, the overall lead in the Government of Canada for trade negotiations, paused further engagement on trade negotiations with India until further notice to take stock of progress, review next steps, and consult with stakeholders. Negotiators were instructed to cease all engagements with India immediately.

• The Government of Canada understands that maintaining and expanding access to key export markets, including India, is critical to the success and growth of the Canadian agricultural sector and the Canadian economy.
• We anticipate that the postponement of the Team Canada Trade Mission to India will have limited impact on our bilateral engagement on agriculture with India.
• We will always stand shoulder-to-shoulder with our farmers, producers, and workers who export the finest products around the world.
• We of Canada remains committed to advancing our priority agriculture market access issues with India, including stable and predictable access for pulses.