Canada moves to rebuild trade ties with India after years of tension

Canada is hoping to rebuild ties with major trading partner India, its trade minister said, as the two countries seek to turn the page on a years-long diplomatic row linked to the killing of a Canadian Sikh activist.

Canadian International Trade Minister Maninder Sidhu told Reuters on Thursday that he had a productive meeting with Indian Commerce Minister Piyush Goyal in New Delhi.

“The meeting went really well. We focused on areas of opportunity — aerospace, AI, critical minerals, energy, agriculture — and what more we can do together,” Sidhu, who is on a three-day trip to India, said after the talks.

The minister’s visit marks one of the highest-level trade engagements between Canada and India since negotiations on a bilateral pact were halted in 2023 over accusations that India was involved in the killing of a Canadian Sikh separatist leader.

The Canadian prime minister at the time, Justin Trudeau, had said there were “credible links” between the government of Indian Prime Minister Narendra Modi and Hardeep Singh Nijjar’s assassination in the province of British Columbia in June 2023.

New Delhi vehemently denied the allegations, which prompted both governments to expel each other’s diplomats. India also suspended visa services in Canada.

Despite the accusations, Trudeau’s successor, Prime Minister Mark Carney, has sought to re-establish ties with India since his government came into office earlier this year.

Carney met Modi on the sidelines of the G7 summit in June in the Canadian province of Alberta.

The two leaders “reaffirmed the importance of Canada-India ties, based upon mutual respect, the rule of law, and a commitment to the principle of sovereignty and territorial integrity”, according to a readout of the discussions released by Carney’s office.

“The leaders agreed to designate new high commissioners, with a view to returning to regular services to citizens and businesses in both countries.”

Thursday’s talks in New Delhi also come as both India and Canada face increased economic uncertainty spurred by United States President Donald Trump’s steep tariffs.

Sidhu, the Canadian trade minister, told Reuters that the Carney government was eager to enhance cooperation with India to attract investment in the energy and critical minerals sectors.