India-Canada Trade Talk Paused: Why Relations Between The Two Have Soured

Days after being scolded by Prime Minister Narendra Modi on rising secessionist activities and Khailstan-supporters attacking Indian diplomatic missions on their land, Canada has said it is postponing a trade mission to India planned for October. The two nations had earlier this year said they aimed to seal an initial trade agreement this year itself. However, negotiations for a bilateral free trade agreement have now reportedly been stalled.

The trade mission was tied up with Canada's Indo-Pacific strategy, and India was described as an "ideal destination" for a Team Canada Trade Mission. "Canada and India have a mutual interest in expanding our commercial relationship and growing people-to-people connections," Canada had said.It added, "The nexus of such forces with organized crime, drug syndicates and human trafficking should be a concern for Canada as well. It is essential for the two countries to cooperate in dealing with such threats"

Relations between India and Canada, which has the largest Sikh population in the world after India, have been strained over increasing Khalistani activities. Following a meeting between PM Modi and Mr Trudeau on the sidelines of G20, India issued a strongly-worded statement expressing "strong concerns" about the continuous "anti-India activities" by extremist elements in Canada.Asked whether Khlistani activities and "foreign interference" were discussed in the meeting, Justin Trudeau told reporters Canada will always defend freedom of expression, freedom of conscience, and freedom of peaceful protest, "and it is extremely important to us". 

The Ministry of External Affairs said PM Modi had conveyed in the meeting that extremist elements are "promoting secessionism and inciting violence" against Indian diplomats, damaging diplomatic premises, and threatening the Indian community in Canada and their places of worship.India and Canada had first launched negotiations for a trade deal 13 years ago in 2010. After a lull of almost 5 years, the talks restarted in 2022 with renegotiations on a Comprehensive Economic Partnership Agreement.