Canada-India trade mission delay, political disputes, and strained relations explained, impacting trade negotiations and bilateral ties

Canada-India Trade Mission Postponed Amid Diplomatic Tensions

^{Credit: Google | Mary Ng | Narendra Modi}

In a recent turn of events, the eagerly anticipated trade mission between Canada and India, scheduled for October, has been postponed. The decision comes against the backdrop of escalating diplomatic tensions between the two nations. Canadian Trade Minister Mary Ng‘s spokesperson, Shanti Cosentino, confirmed the postponement, although no specific reason was provided at this time.

This delay follows a significant incident during the G20 Summit in New Delhi, where Indian Prime Minister Narendra Modi‘s refusal to engage in formal bilateral talks with Canadian Prime Minister Justin Trudeau raised eyebrows. The terse meeting on the summit’s sidelines highlighted the simmering discord between the two countries.

India-Canada Free Trade Agreement (FTA) negotiations paused. Due to certain political developments in Canada, Canada-India FTA negotiations stand paused. Talks to resume once issues are settled between both the governments: Sources
— ANI (@ANI) September 15, 2023

One of the underlying issues contributing to this strain is Canada’s Sikh population, which is the largest outside of Punjab, India. Canada has witnessed protests and activities that have irked the Indian government, including allegations of promoting secessionism, inciting violence against Indian diplomats, and damaging diplomatic premises.

Moreover, both nations have recently put the brakes on negotiations for a free trade agreement. Canada initiated this pause in early September, citing concerns over political developments in their country. In response, Indian officials expressed their objections to these developments, resulting in the temporary halt of trade talks.

The root of these political concerns lies in controversial incidents, such as a parade float in Brampton, Ontario, which depicted the assassination of former Indian Prime Minister Indira Gandhi. This display was perceived as celebrating separatist violence and ignited outrage within the Indian government.

While the Indian government has voiced its “strong concerns about continuing anti-India activities” in Canada, Canada, too, has been navigating its own challenges. Canada’s Sikh population includes separatists seeking to establish an independent Sikh state known as Khalistan in northern India. This issue has added complexity to the diplomatic relationship.

Canadian Prime Minister Trudeau, on his part, has defended the principles of freedom of expression, conscience, and peaceful protest. However, he has also expressed his intention to push back against hatred while emphasizing that the actions of a few do not represent the entire Canadian community.

The trade negotiations between Canada and India, which have been ongoing since 2010, are now temporarily on hold. Both countries had initially aimed to secure an initial trade agreement this year. Bilateral trade between the two nations has seen a steady increase, reaching USD 8.16 billion in 2022-23 from USD 7 billion in the previous fiscal year.

In essence, the postponement of the trade mission and the pause in trade talks underscore the complexities and sensitivities surrounding the Canada-India relationship. These recent developments reflect the need for both nations to address their political differences and seek a path toward resolution before they can resume discussions on a crucial trade agreement.