Canada is accelerating efforts to revive a long-stalled trade agreement with India, following a period of diplomatic tensions and shifting foreign policy priorities.
TORONTO — Canadian Foreign Minister Anita Anand announced on Monday that Ottawa is working diligently to revive a long-delayed trade agreement with India, following two years of diplomatic tensions. This renewed push aligns with Canada’s updated foreign policy approach, particularly in response to the ongoing trade war initiated by former U.S. President Donald Trump.
Anand’s remarks followed a meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi during the recent G20 summit in South Africa. Both leaders agreed to reopen negotiations that have been stalled for over a year.
A Relationship Recovering After Tension
Diplomatic relations between Canada and India deteriorated sharply in 2023 when Canadian authorities accused the Indian government of being involved in the assassination of Sikh activist Hardeep Singh Nijjar in British Columbia.
The leaders emphasized the need for a swift progression in negotiations. “The leaders were clear that the process must move forward as quickly as possible,” Anand told The Associated Press, underscoring Canada’s commitment to advancing talks without delay.
Prime Minister Carney is expected to travel to India early next year, further signaling the commitment to revitalizing bilateral relations.
Anand also highlighted Carney’s ambitious goal of doubling Canada’s non-U.S. trade within the next decade. Currently, over 75% of Canadian exports are directed to the United States, most of which are covered under the United States-Mexico-Canada Agreement (USMCA), which is set for review in 2026. This situation has prompted Canada to seek diversification in its trading partners.
“This represents a major shift in foreign policy, shaped by a more protectionist global economy,” Anand stated. “We have a new government, a new foreign policy direction, and a new world order emerging.”
Canada Also Rebuilding Ties With China
In addition to its efforts with India, Ottawa is simultaneously working to mend relations with China. Carney and Chinese President Xi Jinping held a constructive meeting at the Asia-Pacific summit last month, indicating progress in repairing long-strained ties between the two nations.
Background on the Nijjar Case
Trade talks with India were suspended in 2023 after Canada publicly accused New Delhi of orchestrating the assassination of Hardeep Singh Nijjar, a prominent Sikh leader and Canadian citizen. Nijjar, 45, was shot dead in his truck outside the gurdwara where he served as president in Surrey, British Columbia. Four Indian nationals residing in Canada have since been charged and are awaiting trial.
Relations began to improve in mid-2024 when Carney invited Modi to the G7 summit in Alberta. Diplomatic ties strengthened further when both countries reinstated their high commissioners in August.
“This is a step-by-step journey, and the last six months have seen meaningful progress,” Anand remarked.
Ambitious Trade Goals
Anand stated that both governments aim to double bilateral trade to US$50 billion by 2030. Canada already ranks among India’s largest foreign investors and is India’s seventh-largest trade partner for goods and services.
Canada’s Position on U.S. Trade Relations
Tensions between Canada and the U.S. persist, particularly after Trump halted trade discussions with Carney over an anti-tariff advertisement released by the Ontario government. This disagreement followed months of friction, including Trump’s controversial suggestion that Canada should become the 51st U.S. state—a dispute that has since cooled.
Despite these tensions, Anand stated that Canada is prepared to restart talks with Washington whenever the opportunity arises. “The United States has fundamentally reshaped all of its trade relationships,” she said. “We’re ready to return to the negotiating table.”
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