TORONTO — Canadian Foreign Minister Anita Anand announced Monday that Ottawa is working at full speed to revive a long-delayed trade agreement with India, following two years of diplomatic tension. She noted that Canada’s renewed push aligns with its updated foreign policy approach in response to U.S. President Donald Trump’s ongoing trade war.
Anand’s comments came after a meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi during the G20 summit in South Africa. Both leaders agreed to reopen negotiations that have been stalled for more than a year.
A Relationship Recovering After Tension
Diplomatic relations deteriorated sharply in 2023 when Canadian authorities accused the Indian government of involvement in the killing of Sikh activist Hardeep Singh Nijjar in British Columbia.
“The leaders were clear that the process must move forward as quickly as possible,” Anand told The Associated Press. She emphasized that Canada aims to advance talks without delay.
Prime Minister Carney is expected to travel to India early next year.
Anand also highlighted Carney’s goal of doubling Canada’s non-U.S. trade within the next decade. With over 75% of Canadian exports currently flowing to the United States — most covered under the USMCA, which comes up for review in 2026 — Canada is seeking to diversify its trading partners.
“This represents a major shift in foreign policy, shaped by a more protectionist global economy,” Anand said. “We have a new government, a new foreign policy direction, and a new world order emerging.”
Canada Also Rebuilding Ties With China
Ottawa is simultaneously working to mend relations with Beijing. Carney and Chinese President Xi Jinping held a constructive meeting at the Asia-Pacific summit last month, signaling progress in repairing long-strained ties.
Background on the Nijjar Case
Trade talks with India were suspended in 2023 after Canada publicly accused New Delhi of orchestrating the assassination of Hardeep Singh Nijjar, a prominent Sikh leader and Canadian citizen.
Nijjar, 45, was shot dead in his truck outside the gurdwara where he served as president in Surrey, British Columbia. Four Indian nationals living in Canada have since been charged and are awaiting trial.
Relations began improving mid-2024, when Carney invited Modi to the G7 summit in Alberta. Diplomatic ties strengthened further when both countries reinstated their high commissioners in August.
“This is a step-by-step journey, and the last six months have seen meaningful progress,” Anand said.
Ambitious Trade Goals
Anand stated that both governments aim to double bilateral trade to US$50 billion by 2030. Canada already ranks among India’s largest foreign investors and is India’s seventh biggest trade partner for goods and services.
Canada’s Position on U.S. Trade Relations
Tensions remain between Canada and the U.S. after Trump halted trade discussions with Carney over an anti-tariff ad released by the Ontario government. The disagreement followed months of friction, including Trump’s controversial claim that Canada should become the 51st U.S. state — a dispute that has since cooled.
Still, Anand said Canada is prepared to restart talks with Washington whenever the opportunity arises.
“The United States has fundamentally reshaped all of its trade relationships,” Anand said. “We’re ready to return to the negotiating table.”
