Steel Minister Nagendra Nath Sinha emphasized that they are following the developments, will make an evaluation, and that the issue is very important.
In a meeting earlier Sinha had also told reporters that exports to Canada were at the lower limit and were not yet affected by the diplomatic row.
But in mid-September, Reuters reported that India's JSW Steel Ltd (JSTL.NS) had slowed its purchase of a stake in the steelmaking coal unit of Canada's Teck Resources (TECKb.TO). This development was perceived as the first sign that the diplomatic dispute was also affecting commercial ties between the countries.
Previously, Prime Minister Trudeau had stated that they were carefully monitoring the developments regarding diplomatic tension, while the Indian foreign ministry had described all the allegations as absurd.
On the other hand, the Canadian Prime Minister personally met with the host Indian Prime Minister, Narendra Modi, for the G20 summit on September 9.
Also on September 20, India deported a Canadian diplomat. The diplomatic conflict between the two countries escalated following accusations that Indian connections may have been involved in the incident in the Canadian suburb of Vancouver.
Negotiations are on hold
Negotiations regarding the trade agreement, which is expected to be agreed between the two countries by the end of 2023, have been paused. But India is Canada's tenth largest trading partner and plans for a trade agreement have been in the works for more than a decade. Additionally, the presence of a large number of citizens of Indian origin in Canada adds another dimension to diplomatic relations.
It is noted that such a development could negatively affect the relations between Canada and India, which have been stagnant for several years.
Comments
No comment yet.