India’s external relations are generally amicable with countries except its immediate neighbours with which it has had military conflicts in the past. On this count, the deterioration in ties with Canada — the optics were perhaps the worst during the 2023 G20 Summit in Delhi — was an exception of sorts. The then Canadian government’s attitude toward the bilateral relationship was driven by hopes of partisan gain in domestic politics. Recent developments in Canadian politics have not favoured those invested
India’s external relations are generally amicable with countries except its immediate neighbours with which it has had military conflicts in the past. On this count, the deterioration in ties with Canada — the optics were perhaps the worst during the 2023 G20 Summit in Delhi — was an exception of sorts. The then Canadian government’s attitude toward the bilateral relationship was driven by hopes of partisan gain in domestic politics. Recent developments in Canadian politics have not favoured those invested in such beliefs.
Governments in both countries have done well to let bygones be and start a new page in the Indo-Canadian relationship. What makes this détente better is that it is based on an earnest effort to deepen economic engagement between the two countries. This has occurred while the world itself has suffered a large disruption. India and Canada were key US allies in their respective geographies. Both countries have been and continue to be treated pretty roughly by President Trump and elements within his administration and the larger political structure on matters of trade and commerce. Both of them have rightly realised that while not talking to the US isn’t a realistic option, diversification is key to mitigating the headwinds from the Trump disruption to trade.
The forthcoming visit of the Canadian minister of trade to India next month, which is being seen as a precursor to concluding the ongoing Indo-Canadian trade agreement negotiations before the visit of Prime Minister Narendra Modi to Canada in December needs to be seen in this larger context. India has expedited its efforts to formalise and finalise its trade agreements with multiple countries and country-groups in the past year and a half, since the roll-out of Trump’s liberation day tariffs. Canada, has gone a step further, and is now contemplating joining the European Union as an associate member.
In a world where the multilateral trading regime aka WTO is defunct for all practical purposes and the biggest superpower is determined to keep it that way, bilateral and multilateral trade agreements are the most sensible way to go about. Such deals can unlock opportunities for future trade, provide cushion against disruption of existing trade, and most importantly, make partners realise that tangible ties are always better to build relationship than shrill politics on the fringe.
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