India and Canada Reboot Ties with Renewed Diplomatic and Trade Engagement

by Harleen Kaur

AI Generated Summary

  • With the restoration of diplomatic presence, the two countries are now poised to resume negotiations on the Early Progress Trade Agreement (EPTA), which is seen as a precursor to a full-fledged Comprehensive Economic Partnership Agreement (CEPA).
  • In a significant thaw to months of diplomatic frost, India and Canada have agreed to restore full diplomatic ties, reappointing high commissioners to each other’s capitals and committing to relaunch trade negotiations and law enforcement cooperation.
  • In addition to trade, the leaders also agreed to increase cooperation on trans-national law enforcement issues, indicating a more collaborative approach to issues that have caused friction in the past.

In a significant thaw to months of diplomatic frost, India and Canada have agreed to restore full diplomatic ties, reappointing high commissioners to each other’s capitals and committing to relaunch trade negotiations and law enforcement cooperation.

The announcement followed a high-level meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in Canada. This marked the first face-to-face meeting between the two leaders since Carney assumed office and is being widely viewed as a turning point in a relationship strained by recent tensions.

In a post on social media platform X, Prime Minister Modi expressed optimism about the future of bilateral ties, stating: “PM Carney and I look forward to working closely to add momentum to the India-Canada friendship. Areas like trade, energy, space, clean energy, critical minerals, fertilisers and more offer immense potential.”

A statement from India’s Ministry of External Affairs (MEA) confirmed that both countries would take “calibrated and constructive steps” to restore stability in relations. This process begins with the return of high commissioners, whose recall last year had symbolized the depth of the diplomatic crisis.

The crisis began in October 2024 when both nations expelled senior diplomats amid explosive allegations by Ottawa that India was linked to the killing of Canadian citizen and pro-Khalistani activist Hardip Nijjar. The accusations led to a deep freeze in diplomatic contact and stalled several key initiatives, including trade talks.

With the restoration of diplomatic presence, the two countries are now poised to resume negotiations on the Early Progress Trade Agreement (EPTA), which is seen as a precursor to a full-fledged Comprehensive Economic Partnership Agreement (CEPA).

Foreign Secretary Vikram Misri emphasized the wider scope of the resumed dialogue, stating that officials would engage on multiple levels to foster cooperation in strategic areas. These include clean energy, digital infrastructure, artificial intelligence, food security, and critical minerals—sectors crucial to the future economic and technological landscape of both nations.

“The discussions between the two Prime Ministers marked a positive step towards reviving India-Canada relations with a focus on multiple strategic areas and renewed diplomatic engagement,” Misri noted.

Canada echoed these sentiments, confirming the decision to designate new high commissioners and restore regular consular and business services. A statement from the Canadian government added that both leaders reaffirmed their commitment to principles of mutual respect, sovereignty, rule of law, and territorial integrity.

In addition to trade, the leaders also agreed to increase cooperation on trans-national law enforcement issues, indicating a more collaborative approach to issues that have caused friction in the past.

With the reestablishment of diplomatic norms and a shared agenda for economic and technological collaboration, both nations appear to be charting a more pragmatic and forward-looking course.

The world will be watching closely as India and Canada work to turn this diplomatic reset into sustained progress.

Harleen Kaur

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