Vodafone delays Canada-India deal

A high-profile tax dispute between the Indian government and Vodafone Group has made it unlikely that India will sign a foreign investment protection treaty with Canada during a visit this week by Prime Minister Stephen Harper, Canada’s top diplomat in India said yesterday. Canadian High Commissioner Stewart Beck also signalled an important disagreement with India in negotiations aimed at opening up Canadian exports of uranium to India. The Indian government is putting on hold all its negotiations with other countries on foreign investment protection agreements after Vodafone threatened the Indian government with arbitration proceedings under one that already exists between the Netherlands and India.