Finance Minister Fran\u00e7ois-Philippe Champange says the federal government is once again \u201cexploring\u201d a formal free-trade deal with India, and that the South Asian country also sees \u201ca lot of benefit\u201d to deepening ties with Canada. <\/p>\n
In an interview with CTV Question Period airing Sunday, host Vassy Kapelos asked Champagne directly whether he, as finance minister, wants a formal free-trade deal with India.<\/p>\n
\u201cWe\u2019re exploring,\u201d he said. \u201cI\u2019m smiling because I was trade minister 10 years ago when this discussion started.\u201d <\/p>\n
\u201cSo, one thing that I can say is that Prime Minister (Mark) Carney wants to go much faster,\u201d Champagne said, pointing to the number of trade agreements signed with other countries in recent months. <\/p>\n
Champagne is joining Carney this week on a trip to India, as the prime minister works to reset relations after years of tension.<\/p>\n
Canada and India have been at odds since 2023, when the federal government first levelled allegations of both foreign interference and transnational repression, including crimes such as murder and extortion. <\/p>\n
At the time, talks toward a free-trade agreement \u2014 which had been underway for years \u2014 were indefinitely put on pause. <\/p>\n
Carney, meanwhile, has pledged to diversify Canada\u2019s trading partners to insulate the economy from a protracted trade war with the United States. <\/p>\n
Despite the previously fraught relationship, Carney and Indian Prime Minister Narendra Modi have now met three times since last June. And, they announced in November they had agreed to launch negotiations towards a new Comprehensive Economic Partnership Agreement (CEPA).<\/p>\n
They made the announcement just hours after Carney made it clear, in response to a question from CTV News, that \u201cyes,\u201d he does consider India to be a reliable trading partner.<\/p>\n
\u201cWe\u2019ve seen what\u2019s going on in the world. It is in Canada\u2019s best interest,\u201d Champagne told Kapelos. \u201cThe United States always will be a strategic partner.\u201d<\/p>\n
\u201cBut at the same time, Canadians understand that the world has changed,\u201d he also said, before citing measures, such as the federal government\u2019s pledge to eliminate interprovincial trade barriers, as examples of ways to become more resilient. <\/p>\n
\u201cTaking back control of our economy is doing the things that are at home, which is very important, and at the same time branching out so that we have these strategic partnerships.\u201d<\/p>\n
Champagne also pointed to other G7 countries that have been engaging with India, and the leaders of those countries that have recently met with Modi \u2014 such as the U.K. and France \u2014 arguing that Canada is following suit. <\/p>\n
\u201cI think it\u2019s good for Canada,\u201d he said. \u201cYou know, engagement doesn\u2019t mean endorsement.\u201d <\/p>\n
Asked why this attempt at hammering out a deal will be any different than previous ones, Champagne said: \u201cThe world is different.\u201d <\/p>\n
\u201cAnd I understand it,\u201d he added. \u201cAnd I would say, respectfully, my Indian counterpart understands it.\u201d<\/p>\n
\u201cOur G7 partners and beyond understand that India is going to be an economic superpower,\u201d he said. \u201cAnd therefore, you have to engage constructively.\u201d<\/p>\n
Champagne said while he doesn\u2019t want to \u201cspeak for India,\u201d he believes Modi and his government \u201csee a lot of benefit\u201d to working with Canada, including on critical minerals, artificial intelligence, food security and energy security. <\/p>\n
\u201cI think the dynamic of the world trade has changed, which is opening up opportunities that perhaps were not seized at the time,\u201d Champagne said, in reference to previous attempts to ink a free-trade deal. \u201cI wish we would have done it then, but you know, the world now is requiring us to do things differently.\u201d<\/p>\n
Government officials downplay transnational repression threats<\/p>\n