Question Period Note: BILATERAL AGRICULTURAL TRADE WITH INDIA

Q1 – What is the Government’s response regarding the paused negotiations on the Early Progressive Trade Agreement /Comprehensive Economic Partnership Agreement negotiations with India?

As you know, in late August 2023, Canada decided to pause Early Progress Trade Agreement (EPTA) negotiations with India to consider its options moving forward.

R.1 - This decision was not taken lightly. We remain committed to the Canada-India bilateral commercial relationshipand are open to re-engaging when the time is right.

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 9th largest export market for agri-food and seafood products in the world. In 2023, Canadian agri-food and seafood exports to India totaled CAD $848.8 million, up from 2022 by 102%, but still down from a peak of $1.5 billion in 2015, and accounted for nearly 17% of the value of Canada’s total exports to India in 2023. Top exports in 2023 included: dried lentils ($735.2 million), dried peas ($50.1 million) and chickpeas ($10.3 million).

In 2023, Canada imported just over CAD $1 billion of agri-food and seafood products from India, representing an increase of 4.3% from the previous year. Top five imports were frozen shrimps and prawns (18.4%), semi-milled rice (15.5% share), shrimps and prawns, prepared or preserved (4.6% share) and mucilages and thickeners derived from locust beans (3.2% share).

Pulse exports to India

Canadian pulse exports are a key aspect of the Canada-India bilateral trade relationship 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 for Canada’s systems approach. The trial for lentils has progressed well, and the final shipment (10 of 10) is expected to ship in the near future. In June 2024, India confirmed that Canada may begin sending trial shipments for other pulses under the agreed protocol, including for peas (Pisum sativum), which is key for the Canadian industry. This will begin after the 10th shipment of lentils has been successfully sent and received in India.

Canada-India Early Progressive Trade Agreement (EPTA)/Comprehensive Economic Partnership Agreement (CEPA) Negotiations

In 2022, Canada and India re-launched Canada-India CEPA negotiations. In pursuit of that goal, both ministers agreed to pursue an 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.

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 will always stand shoulder-to-shoulder with our farmers, producers, and workers who export the finest products around the world.

We remain committed to advancing our priority agriculture market access issues with India, including stable and predictable access for pulses.