‘Government remains open to …’: What Canada’s trade minister said on economic ties amid diplomatic fallout with India

Canadian trade minister Mary Ng said that her government was committed to maintaining robust commercial ties with India in the wake of a significant diplomatic rift between India and Canada.
“I want to reassure our business community that our government remains fully committed to supporting the well-established commercial ties between Canada and India,” Ng said on Tuesday.
Ng, who oversees export promotion, international trade, and economic development, highlighted the ongoing support of Canada’s Trade Commissioner Service, which will continue to assist Canadian companies operating in India.
“Let me be clear: Canada stands firmly by its businesses. We will work closely with all Canadian enterprises engaged with India to ensure these important economic connections remain strong,” she said.
However, she also pointed out the need to balance economic interests with the protection of Canadians and adherence to the rule of law. “We will not tolerate any foreign government threatening, extorting, or harming Canadian citizens on our soil. We urge the government of India to respect the same principles of law and justice that guide our actions,” Ng added.
Despite the current tensions, Ng expressed Canada’s openness to dialogue, stating, “The Government of Canada remains open to a dialogue with India and we look forward to continuing our valued relationship.”
Her comments come as India and Canada’s diplomatic relations hit rock-bottom with both the nations expelling each other’s diplomats.
According to the India Brand Equity Foundation, the bilateral trade between Canada and India reached USD 8.27 billion in the fiscal year 2022-2023 and USD 5.3 billion during the period from April to November 2023. In 2022, India ranked as Canada’s ninth largest merchandise trading partner in the Indo-Pacific and the 13th largest globally.
Major exports from India to Canada include pharmaceutical products valued at USD 274.05 million, nuclear reactors, boilers, and parts at USD 195.46 million, and electrical machinery at USD 160.68 million for the April-November 2023 period. Conversely, key imports from Canada during the same period consisted of petroleum products at USD 608.17 million, edible vegetables at USD 420.60 million, and fertilizers at USD 337.63 million.
As of September 2023, Canada is ranked as the 17th largest foreign investor in India, with cumulative investments amounting to USD 3.6 billion since April 2000, constituting approximately 0.56% of India’s total foreign direct investment (FDI) inflow.
The investigation into the murder of Hardeep Singh Nijjar, a Sikh separatist leader in British Columbia sparked a major diplomatic row between India and Canada. Nijjar, a Canadian citizen, was designated as a terrorist by India in July 2020.
India expelled six Canadian diplomats, including the acting high commissioner on Monday, hours before Canada’s foreign ministry announced the expulsion of six Indian diplomats.These actions follow a series of tit-for-tat expulsions and suspended visa services.