Brief Context
Context Two years after a major rupture in ties, India and Canada have agreed to restore the High Commissioners, and discussed restarting talks for a trade agreement, visa services, and other dialogue mechanisms. About The decisions came during Prime Minister Narendra Modi’s talks with Canada’s newly elected Prime Minister Mark Carney on the sidelines of the G7 outreach session. The leaders also discussed the importance of restarting the stalled negotiations on the Trade Agreement (EPTA), with a
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Syllabus: GS2/IR
Context
- Two years after a major rupture in ties, India and Canada have agreed to restore the High Commissioners, and discussed restarting talks for a trade agreement, visa services, and other dialogue mechanisms.
About
- The decisions came during Prime Minister Narendra Modi’s talks with Canada’s newly elected Prime Minister Mark Carney on the sidelines of the G7 outreach session.
- The leaders also discussed the importance of restarting the stalled negotiations on the Trade Agreement (EPTA), with a view to paving the way for a Comprehensive Economic Partnership Agreement (CEPA).
- The two Prime Ministers discussed collaborations in “clean energy, digital transformation, artificial intelligence, LNG, food security, critical minerals, higher education, mobility, and supply chain resilience”.
Background of the Issue
- Khalistani separatist activities in Canada have strained ties; India has repeatedly raised concerns over Canada’s inaction.
- 2023 Diplomatic Row: Relations deteriorated after the Canadian PM alleged Indian involvement in the killing of a Canadian citizen linked to Khalistan extremism.
- India dismissed the allegations and expelled Canadian diplomats.
- Talks on trade and economic agreements were suspended due to the diplomatic fallout.
Brief on India-Canada Relations
- Historical Relations: India and Canada established diplomatic relations in 1947.
- Shared democratic values and Commonwealth membership have underpinned ties.
- Relations were historically strained after India’s nuclear tests in 1974 and 1998, due to Canada’s non-proliferation stance.
- Economic Cooperation: In 2024 (January – August), total bilateral trade in goods amounted to USD 8.55 billion (India’s exports: USD 5.22 billion and India’s imports: USD 3.33 billion).
- Negotiations continue on a Comprehensive Economic Partnership Agreement (CEPA) and a Foreign Investment Promotion and Protection Agreement (FIPA).
- Civil Nuclear Cooperation: Nuclear Cooperation Agreement (NCA) signed in 2010, operational since 2013.
- A Joint Committee oversees implementation of the 2010 Agreement on “Cooperation in Peaceful Uses of Nuclear Energy”.
- Space Cooperation: MoUs signed in 1996 and 2003 between ISRO and Canadian Space Agency (CSA).
- Cooperation includes satellite tracking, space astronomy, and commercial satellite launches.
- ISRO’s commercial arm ANTRIX has launched multiple Canadian nanosatellites.
- Science and Technology: Department of Earth Science and Polar Canada have started a programme for exchange of knowledge and scientific research on Cold Climate (Arctic) Studies.
- A Memorandum of Cooperation between National Centre for Polar and Ocean Research (NCPOR) and POLAR Canada was signed in 2020.
- People-to-People Links: There are around 1.8 million Indo-Canadians and one million non-resident Indians in Canada, making up over 3% of its population.
- India is the largest source of international students in Canada, with Indians making up around 40% of that group.
- Strong cultural exchanges and vibrant diaspora influence bilateral perceptions.
- Multilateral Cooperation: Both countries cooperate in forums like the G20, Commonwealth, United Nations, and International Solar Alliance.
Conclusion
- India–Canada relations have strong foundations and significant potential, especially in trade, education, and clean energy. However, bilateral ties remain fragile, with political and security concerns acting as key irritants.
- The future of the relationship depends on how both countries manage these differences while leveraging shared interests.
Source: TH