Question Period Note: Canada-India Trade

Impact of bilateral tensions on bilateral trade relations, including free trade negotiations, trade flows, and Team Canada trade mission.

• The Government of Canada remains committed to supporting the well-established commercial ties between Canada and India.
• Two-way bilateral trade has continued to increase. Canada’s exports of goods and services to India grew 6.3% in 2024 to reach $20.5 billion, while imports grew by 8.6% to reach $9.5 billion.
• Both India and Canada have publicly stated that current bilateral tensions should not obstruct our long-standing commercial ties.
• Canada is not currently negotiating a trade agreement with India.

Canada and India share over 75 years of diplomatic relations and deep people-to-people ties. Bilateral relations were formally designated as a "Strategic Partnership" in 2018, structured around various Ministerial Dialogues. These dialogues, along with trade negotiations, are currently dormant largely due to bilateral tensions. A Team Canada Trade Mission originally planned for 2023 was paused indefinitely.

The Government has engaged India on allegations that its agents were involved in the murder of Canadian citizen Hardeep Singh Nijjar, issues of Khalistani extremism, as well as broader concerns regarding foreign interference.

India's concerns about Khalistani extremism in Canada are a significant factor in the relationship. India has expressed openness to deepen cooperation with Canada in targeted areas, including the management of our broad people-to-people relations, and trade and investment.

The Indian market continues to offer significant business opportunities for Canadian companies. The Trade Commissioner Service remains committed to helping Canadian companies in priority sectors in India.

The Trade Commissioner Service continues to work closely with partners, including Export Development Canada, Canadian provincial offices in India and business chambers to offer services to Canadian companies and organisations and support investment attraction activities.

Canada has held trade negotiations with India on and off since 2010. Most recently, Canada and India paused trade negotiations in August 2023.

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