Carney, Modi Initiate Canada-India Trade Deal Negotiations: Source

Prime Minister Mark Carney of Canada and Indian Prime Minister Narendra Modi have embarked on negotiations for a new trade agreement, the Comprehensive Economic Partnership Agreement. This was confirmed by a senior government official and reported by India’s Ministry of External Affairs.

Objective of the Trade Deal

The primary goal is to double bilateral trade to $50 billion USD (approximately $70.5 billion CAD) by 2030. Modi invited Carney for an official visit to India, marking a notable development in diplomatic relations between the two nations.

Context of Recent Relations

This agreement comes after a period of strained relations triggered by allegations connecting Indian agents to the 2023 killing of Hardeep Singh Nijjar, a Sikh activist in Canada. Relations appear to be improving following Carney and Modi’s meeting at the G20 summit in Johannesburg, South Africa. This was their second face-to-face meeting since Carney took office, the first being at the G7 summit in Canada last June.

Past Trade Talks

Negotiations about a trade deal began 15 years ago, but were reduced to sectoral discussions until late 2023 due to the tensions surrounding Nijjar’s death. Despite these challenges, both leaders expressed positive sentiments regarding recent advancements in their bilateral relationship.

• Dinesh Patnaik, India’s High Commissioner to Canada, indicated that trade discussions had resumed after the G7 summit.
• Minister of International Trade Maninder Sidhu met with India’s Petroleum and Gas Minister, which is crucial given the sector’s importance to India.

Public Statements and Concerns

Modi referred to his meeting with Carney as “very productive,” highlighting a significant momentum in their relationships. The Canadian government, however, faces scrutiny regarding its renewed approach toward India amid serious accusations involving Indian officials in crimes on Canadian soil. India has denied these allegations.

Canadian Security Intelligence Service (CSIS) Director Dan Rogers confirmed that vigilance is necessary regarding potential threats from India. This context raises questions about the balance between enhancing trade relations and maintaining national security.

Community Impact and Future Discussions

As discussions about the trade deal continue, members of the Sikh community in Canada have raised concerns about ongoing threats from gangs with alleged ties to the Indian government. Scholars suggest that recent trade wars, particularly initiated by the U.S., have influenced both governments’ strategies toward each other.

The Sikh community’s movement for an independent Punjab, known as “Khalistan,” has come under scrutiny. The Indian government considers this movement as a challenge to its sovereignty, and Patnaik has labeled a recent referendum by Sikh activists in Canada as “farcical.”

Conclusion

Prior to his meeting with Modi, Carney emphasized Canada’s view of India as a reliable trading partner. Both countries aim to secure a relationship that fosters economic growth while addressing security concerns. As negotiations for the trade deal progress, it remains vital for both nations to navigate the existing complexities of their diplomatic relations.