India-Canada Trade Talks on Hold as Canada Focuses on Hardeep Nijjar Case
The trade talks between India and Canada, which have been suspended since September, may continue to be on hold as Canada prioritizes the investigation into the killing of Khalistani terrorist and Canadian citizen Hardeep Singh Nijjar, according to Canada’s Trade Minister Mary Ng. Ng did not confirm a direct link between the paused trade talks and the Nijjar killing but emphasized the importance of the investigation. She stated that the Canadian government wants the investigation to take place, considering that a Canadian was killed on Canadian soil. Ng made these comments during the Asia-Pacific Economic Cooperation summit in San Francisco.
In addition, Ng reassured Canadian businesses operating in India that support and tools would continue to be available to them. She emphasized that the focus for Canada at the moment is to allow the investigation to proceed and ensure the safety of Canadian businesses and investors in India.
While Ng’s comments were cautious, Ian McKay, Canada’s ambassador to Japan, was more direct in his stance. McKay stated that it is wise to pause trade talks while dealing with the Nijjar killing. However, the Indian government has not responded to these statements from Ng and McKay.
The breakdown in trade talks between India and Canada is a setback for India’s efforts to position itself as an alternative supply chain to China. Despite not being among Canada’s top 20 trading partners, India had a trade surplus of $2.87 billion with Canada in 2022.
The tensions between the two countries escalated further during Canadian Prime Minister Justin Trudeau’s visit to India for the G20 Summit, where he had a tense discussion with Indian Prime Minister Narendra Modi regarding Khalistani attacks on Indian missions. India later expressed strong concerns about anti-India activities by extremist elements in Canada.
Trade negotiations between India and Canada began in March last year, and both sides were optimistic about reaching a positive outcome. However, the killing of Nijjar outside a gurdwara in Vancouver in June significantly strained relations between the two countries. India dismissed the allegations as absurd and motivated and requested evidence from Canada to support their claims.
Pressure from the United States and the United Kingdom has been mounting on India to cooperate with Canada in the investigation. Trudeau emphasized that he does not want a fight with India but called for constructive collaboration to address this serious matter.
India’s External Affairs Minister, S Jaishankar, responded by stating that India is open to investigating the Canadian allegations but requested evidence from Ottawa to support their claims.
The trade talks’ suspension is a setback for India’s aspirations to strengthen trade relations with Canada and position itself as an alternative trading partner.
