OTTAWA (CU)_Relations between Canada and China reached an all-time low following the arrest of Huawei executive Meng Wanzhou in Vancouver, in December 2018, on a US extradition request. Nine days later, two Canadians, Michael Kovrig and Michael Spavor, were detained in Beijing, a move which is widely viewed as retaliation for arrest of the Huawei official.
After a lengthy court battle, on 24 September 2021, the US Department of Justice announced it had reached a deal with Meng to resolve the case through a deferred prosecution agreement, the same day on which Canadian Prime Minister Justin Trudeau announced the release of the two Michaels. Now with Meng having left Canada and the two Michaels returning home safely, the Trudeau government is looking to reboot formal free trade talks with India, as it seeks an alternative to China.
Over the past year, trade negotiators from Ottawa and New Delhi have held four “consultative meetings” via video, and during the most recent discussion in October, the parties exchanged preliminary proposals “They talked about the approaches and the possible path forward,” India’s deputy high commissioner to Canada, Anshuman Gaur, said during an interview last week.
The Indian government recently announced its new trade policy, labelled “early harvest”. Under the new policy, the South Asian nation is attempting to reach full-scale free trade deals with the European Union, the United Kingdom, Canada, Australia and the United Arab Emirates.
Meanwhile, the Canadian government is emerging from a three-year diplomatic deep freeze with China and is looking to minimise its economic dependence on the communist superpower and diversify into new Asian markets. This was reaffirmed by a throne speech delivered by the Liberal government last week when it said: “A changing world requires adapting and expanding diplomatic engagement. Canada will continue working with key allies and partners, while making deliberate efforts to deepen partnerships in the Indo-Pacific and across the Arctic.”
