Ottawa/New Delhi: Canadian Foreign Minister Anita Anand said on Monday that Ottawa and New Delhi are preparing to accelerate negotiations on a long-pending trade agreement, signalling a sharp diplomatic reset after two years of strained relations. The announcement comes as Canada adopts a revamped foreign policy framework shaped by US President Donald Trump’s escalating trade actions.
Anand’s remarks followed a meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi during the G20 summit in South Africa, where both leaders agreed to revive stalled talks on a comprehensive trade deal.
Relations had deteriorated sharply after Canadian authorities alleged Indian involvement in the June 2023 killing of Sikh activist Hardeep Singh Nijjar near Vancouver, triggering a diplomatic freeze and suspension of trade negotiations.
“The leaders were clear that this work must move quickly, so the timeline will be expeditious,” Anand told The Associated Press. She confirmed that Carney will visit India early next year as part of the renewed engagement.
The shift aligns with Carney’s broader goal of doubling Canada’s non-US trade over the next decade. Nearly 75 percent of Canadian exports currently go to the United States, much of it under the USMCA agreement, which is scheduled for review in 2026.
Anand said the new strategy reflects a rapidly changing global order. “There is a new government, a new foreign policy, and a new world environment where protectionism is rising. This is a crucial moment for Canada as a trading nation,” she said.
Canada is also working to repair its relationship with China. Carney and Chinese President Xi Jinping held a rare meeting at the Asia-Pacific summit last month, signalling cautious efforts to rebuild ties.
Ottawa halted trade discussions with India in 2023 after publicly accusing New Delhi of orchestrating Nijjar’s assassination. The 45-year-old Canadian citizen, who led a Sikh temple in Surrey and owned a plumbing business, was a prominent supporter of the Khalistan movement. Four Indian nationals have since been arrested in Canada and charged in the case.
Diplomatic ties gradually improved in mid-2025 after Carney invited Modi to the G7 summit in Alberta, followed by the restoration of high-level envoys in August. “This is a step-by-step process, and the last six months have seen meaningful progress,” Anand said.
Both countries now aim to double bilateral trade to USD 50 billion by 2030. Canada is India’s seventh-largest trading partner and a major foreign investor.
Trump previously halted trade talks with Carney after an Ontario government advertisement criticizing US tariffs angered him, capping months of friction stemming from his repeated suggestion that Canada should join the US as its 51st state.
Despite this, Anand said Ottawa remains open to renewed talks with Washington. “The United States has reshaped all of its trading relationships,” she said. “We look forward to returning to the table.”
