Prime Minister Narendra Modi and his Canadian counterpart Mark Carney have agreed to the early return of high commissioners and the resumption of trade discussions.
It’s a major move in bringing a semblance of warmth between two countries.
After months of tension that started with the killing of Khalistan rebel Hardeep Singh Nijjar, the meeting will be followed with keen interest.
The breakthrough came during the presidents’ bilateral session on the margins of the G7 conference, where they emphasized the importance of a “balanced relationship” based on respect for each other’s concerns and sensitivities, strong people-to-people contacts, and expanding economic complementarities. In the Indian readout, the 40-minute meeting was described as “positive and constructive”.
Vikram Misri has told a certain section of the media that the two parties decided on “calibrated steps” to bring the relationship back to stability. Resuming ministerial discussions, senior-level trade negotiations, and other sector-wide working-level interactions with the goal of restoring confidence were among them.
It is believed that Canada and India have spoken about their respective security issues, with India citing the necessity for Ottawa to take action against anti-India groups. Both sides, however, made a conscious decision to avoid letting the Khalistan issue take center stage or divert the discussion by not specifically mentioning this in their formal pronouncements.
The Canadian readout, while not naming Nijjar or directly referencing the diplomatic standoff, stated that Carney had raised the issue of transnational crime and repression — a top priority for Canada at the G7 summit.
The G7 statement strongly opposed transnational repression, describing it as an aggressive form of foreign interference.
In its statement, India emphasised the significance of bilateral relations, emphasising the rule of law, shared democratic ideals, and the dedication to territorial integrity and sovereignty. “They underlined the need to pursue a constructive and balanced partnership grounded in mutual respect for concerns and sensitivities, strong people-to-people ties, and growing economic complementarities,” it said.
Resuming talks on the Early Progress Trade Agreement (EPTA), which Canada had put on hold in 2023 due to escalating tensions, was another topic of discussion. With an eye toward a future Comprehensive Economic Partnership Agreement (CEPA), the leaders decided to give their staff instructions to get back to work on this front.
Although the Canadian statement did not specifically mention trade negotiations, it did recognise “significant commercial links,” such as supply chain collaboration, economic expansion, and the energy transition.
Under then-Prime Minister Justin Trudeau, Canada removed Indian High Commissioner Sanjay Verma and a number of other Indian ambassadors last year amid rising tensions; New Delhi subsequently took retaliatory action. India had insisted that the decline in bilateral ties was primarily due to Trudeau’s “vote-bank politics.”
New senior diplomats have now been selected by both sides to serve as high commissioners, and they are anticipated to start their positions shortly. This action will contribute to the restoration of regular consular and diplomatic services for both nations’ citizens and enterprises, as stated in the Canadian readout.
“The leaders underlined the deep people-to-people connections between the two countries and agreed to leverage this living bridge to the benefit of both countries,” the Indian statement added.
Additionally, the two parties committed to cooperating on common global concerns like sustainable development, inclusive economic growth, and climate action. Both nations underlined their commitment to advancing an open and free Indo-Pacific.
According to Misri, the presidents agreed to resume talks on connectivity and looked into possible joint ventures in the areas of digital infrastructure, clean energy, artificial intelligence, food security, and vital mineral supply chains.
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