Canadian Trade Minister Mary Ng reaffirmed the government’s commitment to maintaining strong commercial ties with India, despite the recent diplomatic conflict between the two nations. Speaking on Tuesday, Ng emphasized, “I want to reassure our business community that our government remains fully committed to supporting the well-established commercial ties between Canada and India.”
As the minister overseeing export promotion, international trade, and economic development, Ng highlighted that Canada’s Trade Commissioner Service will continue to support Canadian businesses operating in India.
Support for Canadian Businesses
Ng assured Canadian enterprises engaged with India that the government would continue to safeguard their economic interests. “Let me be clear: Canada stands firmly by its businesses. We will work closely with all Canadian enterprises engaged with India to ensure these important economic connections remain strong,” she stated.
Balancing Economic Interests and National Security
While reinforcing Canada’s economic ties, Ng also stressed the importance of protecting Canadian citizens and upholding the rule of law. She added, “We will not tolerate any foreign government threatening, extorting, or harming Canadian citizens on our soil. We urge the government of India to respect the same principles of law and justice that guide our actions.”
Openness to Dialogue with India
Despite the ongoing diplomatic tensions, Ng expressed Canada’s willingness to engage in dialogue with India, noting, “The Government of Canada remains open to a dialogue with India and we look forward to continuing our valued relationship.”
Diplomatic Relations Strained Between India and Canada
Ng’s comments come at a time when diplomatic relations between India and Canada have reached an all-time low. Both countries have expelled each other’s diplomats, a reflection of the escalating tensions between the two nations.
Bilateral Trade and Investment Overview
Despite the diplomatic challenges, economic relations between India and Canada have been substantial. According to the India Brand Equity Foundation, bilateral trade between the two countries reached USD 8.27 billion in the fiscal year 2022-2023 and USD 5.3 billion during the period from April to November 2023. In 2022, India was Canada’s ninth largest merchandise trading partner in the Indo-Pacific region and ranked 13th globally.
Major exports from India to Canada during the April-November 2023 period included pharmaceutical products (USD 274.05 million), nuclear reactors and boilers (USD 195.46 million), and electrical machinery (USD 160.68 million). In contrast, Canada’s key exports to India during the same period were petroleum products (USD 608.17 million), edible vegetables (USD 420.60 million), and fertilizers (USD 337.63 million).
Canada is also a notable foreign investor in India. As of September 2023, Canada ranked as the 17th largest foreign investor, with cumulative investments totaling USD 3.6 billion since April 2000, contributing to 0.56% of India’s total foreign direct investment (FDI) inflow.
Diplomatic Row Sparked by Hardeep Singh Nijjar Investigation
The diplomatic rift between India and Canada intensified following an investigation into the murder of Hardeep Singh Nijjar, a Sikh separatist leader in British Columbia. Nijjar, a Canadian citizen, had been designated a terrorist by India in 2020.
In retaliation, India expelled six Canadian diplomats, including the acting high commissioner, just hours before Canada announced the expulsion of six Indian diplomats. This series of expulsions has been accompanied by suspended visa services, adding to the strained relationship between the two countries.
