Context:

Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met on the sidelines of the G7 summit in Kananaskis, Canada, where they agreed to restore High Commissioners to each other's capitals and resume trade talks.

Key Outcomes of the Meeting:

·        Restoration of High Commissioners: India and Canada will appoint new High Commissioners to each other's capitals, with the process expected to be completed by July.

·        Trade Talks: The two countries will resume negotiations on the Early Progress Trade Agreement (EPTA), aiming to pave the way for a Comprehensive Economic Partnership Agreement (CEPA).

·        Collaboration in Emerging Areas: India and Canada plan to cooperate in areas like clean energy, artificial intelligence, digital transformation, LNG, food security, critical minerals, higher education, mobility, and supply chain resilience.

Background to the Diplomatic Row:

The diplomatic rift between India and Canada began in September 2023, when former Canadian Prime Minister Justin Trudeau accused the Indian government of orchestrating the killing of Khalistani activist Hardeep Singh Nijjar in Canada. India denied the allegations, and the two countries expelled several diplomats, suspended visa services, and halted trade talks.

Key Aspects of India-Canada Relations:

·        Strategic and Security Cooperation: Both countries support a rules-based order in the Indo-Pacific, crucial for regional security, peace, and trade. Canada's Indo-Pacific strategy recognizes India as a "critical partner" and China as an "increasingly disruptive global power".

·        Economic and Trade Relations: Bilateral trade in goods reached $9.36 billion in 2023, with India exporting $3.80 billion and importing $5.56 billion. Trade in services totaled $9.99 billion. Canada is the 10th largest trading partner for India.

·        Investment Opportunities: Canadian pension funds have invested over $75 billion in India, viewing it as a favorable destination for investments.

·        Diaspora Connection: Canada hosts one of the largest Indian diasporas, with approximately 1.8 million individuals of Indian origin, accounting for over 3% of Canada's population.

·        Civil Nuclear Cooperation: The Nuclear Cooperation Agreement (NCA) signed in 2010 facilitates cooperation in nuclear energy.

·        Defense Cooperation: The Memorandum of Understanding (MoU) between DRDO and Canadian Commercial Corporation (CCC) promotes development of military and defense-related technology.

Conclusion:

The meeting between Modi and Carney marks a significant step towards resetting India-Canada ties. With the appointment of new High Commissioners and the resumption of trade talks, both countries aim to strengthen their relationship and cooperate in emerging areas. However, the outcome of the Canadian trial related to Nijjar's killing and the evidence presented will be crucial in determining the future trajectory of India-Canada relations.