Why the agricultural sector is hoping cooler heads prevail in the rising diplomatic tensions between Canada and India in the Hardeep Singh Nijjar case.
Here’s what is at stake when it comes to trade.Before the allegation publicly surfaced Monday, trade relations with India were beginning to sour.“within the last month” to ongoing preliminary talks for a trade agreement.
The Trade Commissioner Service said the trip would’ve also sought to increase trade in sectors such as automotive, agriculture and value-added food, digital technology, infrastructure and life sciences. Pharmaceutical products, worth about $418 million, made up the bulk of Indian exports last year, followed by iron and steel products worth about $328 million and machinery, nuclear reactors and boilers worth about $287 million.Sikhs lament alleged Indian involvement in killing of Hardeep Singh NijjarSince 2018, India has been the largest source country for international students in Canada.
However, with India’s strong denial and with trade talks on ice, the spat carries the risk of arbitrary trade measures, said Jeff Nankivell, president of the Asia Pacific Foundation of Canada.“The greatest vulnerability would be in the agriculture sector.… Typically, when governments want to express their displeasure through trade measures … this has to do with how many inspections you need, what kind of chemicals you’re allowed to apply to the crop and that kind of thing,” he told Global News.
“That would affect a lot of different economic interests in Canada, both in the higher education institutions and also the local economies where those institutions are located,” he said.Canada could also impose sanctions targeting sectors or individuals, said John Boscariol, head of the international trade and investment law group at McCarthy Tetrault LLP, but he added that it’s a delicate situation.
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