India, Canada to act swiftly on trade deal; Canadian FM Anita Anand highlights new approach amid US tensions

Canadian Foreign Minister Anita Anand said Monday that Canada and India will act swiftly on the trade deal, following two years of strained relations, noting that Ottawa has a new foreign policy in response to US President Donald Trump's trade war, as reported by AP.

Anita Anand's statement follows a meeting between Prime Minister Narendra Modi and his Canadian counterpart, Mark Carney, at the G20 Summit in South Africa last weekend, where the leaders agreed to resume stalled trade talks for a new deal.

Relations between Canada and India soured in 2023 after the killing of Khalistani leader Hardeep Singh Nijjar.

"The leaders were adamant that this work proceed as quickly as possible so that timing is going to be expeditious," Anand told AP.

Following an invitation from Modi, Carney will visit India early next year.

Canada to lower dependence on US

The Canadian foreign minister highlighted Carney's aim to double non-US trade within ten years. Canada, being highly trade-dependent, exports over 75% of its goods to the US. While most US exports are protected under the USMCA trade agreement, this deal is set for review in 2026.

"This is a completely new approach to foreign policy that is responsive to the global economic environment in which we find ourselves," Anand said. "There is a new government, a new foreign policy, a new prime minister and a new world order where countries are becoming more protectionist, and this is a moment for Canada as a trading nation."

Canada is also striving to improve relations with Beijing. Mark Carney and Chinese President Xi Jinping made a step towards mending the long-standing fractured ties between their nations last month during a meeting at the Asia-Pacific summit.

These developments come amid tensions with the Trump administration, which ended trade talks with Canada after the Ontario provincial government ran an anti-tariff advertisement.

Anand said Canada remains ready to resume trade talks with Trump.

"We are operating under the fact that the United States has fundamentally changed all of its trading relationships," Anand said. "We look forward to getting back to the table."

In 2023, trade talks were suspended after Canada alleged that the Indian government was linked to the assassination of Sikh activist Hardeep Singh Nijjar.

Relations improved in June when Carney invited Modi to the G7 summit in Alberta, and in August, both countries agreed to restore their top diplomats.

"This is a step-by-step process. And in the last six months, significant steps have been taken," Anand was quoted as saying.

Anand said that both countries aim to double bilateral trade by 2030 to $50 billion, while emphasising that Canada is India's seventh-largest trade partner for goods and services, as well as one of the largest foreign investors in India.

(With inputs from agencies.)