Foreign Affairs Minister Anita Anand recently emphasized that Canada’s foreign policy is increasingly turning its focus toward economic relations in the Indo-Pacific region. This shift coincides with Canada’s efforts to mend its previously strained relationship with India, following a diplomatic fallout linked to security disputes. During her first official trip to the region since becoming foreign minister, Anand articulated a need to revisit Canada’s foreign policy, highlighting the interconnectedness between domestic economic interests and global engagement. She asserted that the current global economic climate, characterized by stress and uncertainty, necessitates a reevaluation of how Canada approaches international relations, as foreign policy should reflect domestic priorities.
Historically, the Trudeau administration incorporated themes of environmental protection and social justice into trade agreements, which some business leaders argue may have alienated potential partners. For instance, Goldy Hyder from the Business Council of Canada criticized this approach, suggesting that it made Canada sound “preachy” rather than collaborative. He urged a more respectful and constructive means of advocating democratic values in trade negotiations. The current government under Prime Minister Mark Carney, who seeks to reduce dependency on U.S. economic ties, indicates a shift towards a more pragmatic economic focus in foreign relations, aligning with Anand’s recent statements.
Anand’s recent trip included key engagements in Japan and Malaysia, where she signed an information-sharing agreement that could pave the way for potential defense procurement deals. This visit was strategically timed as Canada attempts to restore its relationship with India, which has suffered in the wake of tensions surrounding the murder of Sikh activist Hardeep Singh Nijjar. The Canadian government linked this incident to Indian government agents, resulting in a tit-for-tat expulsion of diplomats that further exacerbated the situation.
The thawing of relations between Canada and India began in June when Prime Minister Carney invited Indian Prime Minister Narendra Modi to the G7 summit. The two nations agreed to restore high commissioner roles, and discussions on security were resumed in hopes of fostering stronger ties. Recognizing India’s status as the most populous nation, Carney views India as a vital partner in Canada’s strategy to enhance its economic standing in the Indo-Pacific region, lessening reliance on the United States.
Despite ongoing tensions, the Indian corporate sector has encouraged Canada to pursue trade opportunities, reflecting a desire to maintain economic ties despite political challenges. Hyder remarked on how the reduced diplomatic presence in India could hinder Canadian companies’ ability to navigate local markets, stressing the significance of reappointing high commissioners for promoting trade. He noted that although a formal trade agreement would be advantageous, it should not be a prerequisite for boosting bilateral economic engagement.
Experts believe that a trade deal between Canada and India could materialize soon if both nations invest the right efforts. Vijay Sappani from the Macdonald-Laurier Institute expressed optimism about reaching a free-trade agreement within the year, emphasizing India’s integral role in the Indo-Pacific landscape. He suggested that Canada could seek commitments from India to refrain from involvement in violence on Canadian soil in exchange for cooperation on trading practices, underscoring the complexity of balancing economic ambitions with diplomatic sensitivities. Anand remains cautious about specifying a timeline for advancing trade discussions, indicating that Canada will approach its relationship with India incrementally.
