Canada is taking fresh steps to rebuild its trade relationship with India, hoping to move past a long period of diplomatic conflict linked to the killing of a Canadian Sikh activist. During a recent high-level visit, officials from both nations signaled a willingness to strengthen cooperation in multiple economic sectors.
Canada Seeks Renewal of Diplomatic and Trade Cooperation
Canadian International Trade Minister Maninder Sidhu confirmed that his recent meeting with India’s Commerce Minister Piyush Goyal in New Delhi was extremely positive. Speaking to Reuters, Sidhu said the conversation centered on emerging opportunities in aerospace, artificial intelligence, energy, agriculture, and critical minerals.
Sidhu’s three-day visit reflects a renewed effort to rebuild momentum between the two nations after previous negotiations on a bilateral trade deal stalled in 2023, when Canada accused India of involvement in the killing of Sikh activist Hardeep Singh Nijjar.
Background: Diplomatic Freeze After 2023 Assassination Allegations
Tensions sharply escalated when then-Prime Minister Justin Trudeau publicly stated that Canadian authorities had found “credible links” suggesting Indian government involvement in Nijjar’s murder in British Columbia in June 2023.
India strongly rejected the accusations. In the aftermath, both countries expelled diplomats, and India suspended visa services for Canadians, further straining the relationship.
New Leadership Pushes for Improved Relations
After coming into office earlier this year, new Canadian Prime Minister Mark Carney has made re-engagement with India a top priority. Carney and Indian Prime Minister Narendra Modi met during the G7 summit in Alberta, where both leaders reaffirmed their commitment to mutual respect, sovereignty, territorial integrity, and the rule of law.
A joint statement indicated that both countries agreed to appoint new high commissioners, with the goal of restoring normal services for citizens and businesses in each nation.
Economic Motivation Behind Renewed Talks
The recent discussions also come at a time when both nations are dealing with economic pressures created by U.S. President Donald Trump’s tariff increases. These global trade challenges have pushed Canada and India to explore deeper cooperation.
Sidhu emphasized that the Carney government wants to attract Indian investment in critical minerals, energy, and electric battery technology. He noted that Canada possesses all the essential components needed for battery manufacturing, and encouraged India to participate in mining and infrastructure development.
