How Commerce and Immigration may be impacted by the fallout between India and Canada

Diplomatic relations reached new lows following a shocking accusation made by Canadian officials this week that they suspect Indian government operatives were involved in a murder and extortion campaign in the nation.

The potential effects of that rift on the close immigration and trade relations between the two nations are now being questioned.

Although neither nation has retaliated economically with tariffs or other measures, analysts warn that this could change and that a cooled relationship between Canada and India could impede future economic expansion. For more than ten years, the two nations have been intermittently discussing a bilateral trade agreement; however, Canada put a halt to the negotiations last year. 

In the meantime, trade relations between the two continued as usual. The most recent fiscal data from India’s trade ministry indicates that bilateral trade is approximately $8 billion (£6.15 billion).

Business owners were recently reassured by Canada’s trade minister that Ottawa does aim to sabotage trade relations with India.

How the gap will affect people’s ability to travel between the two nations is another major worry. About 4% of Canadians are of Indian descent, and since 2018, India has been the country’s leading source of international students.

Mr. Thukral stated that although immigration procedures are still in place, he has cautioned his clients about possible delays because of the reduction in diplomatic personnel in both nations.

Others are worried about India reintroducing limits on Canadian visas, particularly those in Canada who have family in India. 

Renegotiating his trade agreement with Canada and Mexico is something Trump wants to do.

The US-Mexico-Canada Agreement, or USMCA, was signed by Trump in 2018. Instead of NAFTA, it went into force in January 2020.

“The most modern, up-to-date, and balanced trade agreement in our country’s history, with the most advanced protections for workers ever developed,” Trump declared in 2018 of the USMCA.

He now believes it can be made better, though.

According to Trump’s remarks at the Detroit Economic Club last week, “I will formally notify Mexico and Canada of my intention to invoke the six-year renegotiation provision of the USMCA that I put in,” as soon as he takes office.

Harris wants to examine the USMCA as well.

Kamala Harris, the vice president, has also stated that she will use the USMCA review process.

Ten US senators voted against USMCA at the time, including Harris, who is currently the Democratic presidential nominee.

Harris expressed her concern that the USMCA’s environmental provisions fell short in addressing climate change after the Senate vote in 2020.

This is what the USMCA contains.

A new incentive to manufacture cars and trucks in North America was one of the most significant improvements. In order to avoid tariffs when traveling across borders, the USMCA now mandates that 75% of a vehicle’s parts be manufactured in one of the three nations, up from the previous 62.5% requirement.

A $1 million fine was imposed on the company for dumping harmful effluent into the Peace River.

The Alberta Court of Justice punished Mercer Peace River Pulp Ltd., commonly referred to as Mercer Peace River, on Friday. After an inquiry by Environment and Climate Change Canada, the business entered a guilty plea on September 4 to one count of breaking the Fisheries Act. 

On April 14, 2021, enforcement officials found that the corporation had dumped or allowed the dump of more than 30 million liters of fish-toxic wastewater from its pulp mill into the Peace River.

The Spill pond wasn’t big enough. 

Wastewater from cleaning operations and waste materials from process vessels were produced during a maintenance closure of the pulp mill, according to the federal government’s inquiry. The spill pond was the direction they were given. 

The reason the spill pond didn’t function as intended was that the corporation hadn’t kept it equipped to handle the extra effluent. Softwood and hardwood pulp are produced at the pulp mill, which began operations in 1990, according to the company’s website.

The fine will be deposited into the government’s environmental damages fund, which is intended to either repair or improve the environment, according to the news release