Kim Mackrael

Immediately after the election, Canada's new government began to recalibrate our relationship with China, strategically, pragmatically, and decisively.

It's quite a big deal, actually, for both economies.

They both say it's the largest one they have done with a bilateral trading partner.

And it includes some pretty big concessions in terms of lowering tariffs on the Indian side.

They're looking at quite a significant drop from the current level of 110% tariffs on European cars.

That's supposed to gradually go down to eventually hit 10%.

We don't yet know exactly the timeline for that, but that could be quite a significant new market for European automakers.

It is capped at 250,000, so it's not a notable one.

We're looking at lower tariffs from India on European machinery, chemicals, pharmaceuticals, and some agricultural goods.

So quite a bit there.

It's also, for the Indian side, it's quite a big deal to be lowering some of those tariffs because it's a country that has long had quite a bit of protection on its market.

And some of the lower tariffs, according to the EU, are the biggest India has offered to a trading partner so far.

That's right.

Yeah.

So India has been hit by 50% tariffs last year by the Trump administration.

Those are some of the highest tariff levels that the US has applied to its trading partners.

So this deal is expected to carry some benefits for India's textiles, jewelry, leather industries.

And it also follows on a free trade agreement that India has

agreed to last year with the UK.

So they're really hoping that it will help with shoring up their global supply chains.