India and Canada intend to develop trade talks following years of poor relations between the two countries. Canadian Foreign Minister Anita Anand reported that both countries desire to resume the trade process that was held back with a quicker schedule. Her remarks were made following a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at the South Africa G20 Summit.
The two governments have the goal of taking bilateral trade to $50 billion by 2030. India and Canada are interested in stabilising their economic relationship by solving past problems. In 2023, after Canada alleged that one of the Indians was linked to the murder of a Sikh activist, Hardeep Singh Nijjar, tensions arose.
Anand claimed that the trade process should progress moderately among the leadership teams. Carney is going to India at the beginning of the following year once Modi invites him. The officials hope that the visit will help the re-initiation of the talks and mark the start of a more active stage of cooperation.
Canada will decrease its heavy dependence on the United States as a trading partner. The U.S. now exports more than three-quarters of Canadian exports, with the majority of them being covered by the USMCA agreement. As the contract can be renegotiated in 2026, Canada desires to have more equal trade relations.
According to Anand, Canada has a new way of foreign policy influenced by economic changes in the world. She indicated that due to the protectionist trends, it is essential that Canada expand its partnerships. India has also become important in the long-term strategy of Canada by Carney, who intends to double non-U.S. trade in Canada within a decade.
Canada is also trying to build relations with China. The meeting of Carney with Chinese President Xi Jinping at the Asia-Pacific summit was to ease the tension between the two nations.
These developments are made in a time when there is tension between Canada and the United States. The Trump administration halted trade talks with Canada due to a disagreement over an anti-tariff advertisement by the Ontario government.
Anand replied by saying that Canada was willing to resume negotiations with the U.S. in the event of an opportunity. Canada and India have made several steps in efforts to restore trust this year. Modi was invited to the G7 Summit in Alberta, and both countries recalled their ambassadors in August.