Canadian Trade Minister has said the government will continue to support businesses amid strained ties with India.- This comes after India expelled six Canadian diplomats and withdrew its High Commissioner and five other diplomats from Ottawa.
- Canada and India achieved a
bilateral trade relationship that reached $8.27 billion in FY23.
"I want to reassure our business community that our government remains fully committed to supporting the well-established commercial ties between Canada and India," Mary Ng, the minister of export promotion, international trade and economic development, said in a statement.
India on Monday expelled six Canadian diplomats and withdrew its High Commissioner and five other diplomats from Ottawa. Canada, however, claimed that the Indian diplomats were expelled.
Ng also said that "the Government of Canada remains open to a dialogue with India and we look forward to continuing our valued relationship."
"Our Trade Commissioner Service will continue to assist and provide resources to Canadian companies operating in India," she said as India in an unprecedented step not only recalled its high commissioner from Ottawa but also expelled six of the Canadian diplomats from New Delhi.
"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, we must consider our economic interests with the need to protect Canadians and uphold 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 said.
"The Government of Canada remains open to a dialogue with India and we look forward to continuing our valued relationship," said the minister.
The ties between India and Canada came under severe strain following Canadian Prime Minister Trudeau's allegations in September last year of the "potential" involvement of Indian agents in the killing of Nijjar. New Delhi rejected Trudeau's charges as "absurd".
As the ties between the two countries hit rock bottom, Canadian Foreign Minister Melanie Joly did not rule out imposing sanctions against India saying "everything is on the table".
On its part, India strongly rejected attempts by Canadian authorities to link Indian agents with criminal gangs in Canada with official sources even saying that Ottawa's assertion that it shared evidence with New Delhi in the Nijjar case was simply not true.
According to the India Brand Equity Foundation, Canada and India achieved a bilateral trade relationship that reached $8.27 billion in FY23 and $5.3 billion during April-November 2023.
In 2022, India was Canada's ninth-largest merchandise trading partner in the Indo-Pacific region, the 13th-largest merchandise trading partner globally and the 14th-largest destination for merchandise exports.
As of September 2023, Canada was ranked as the 17th largest foreign investor in India, having made cumulative investments amounting to $3.6 billion since April 2000. Canadian investments constitute approximately 0.56% of the total foreign direct investment (FDI) inflow into India.
More than 600 Canadian companies and organizations have established a presence in India. The bilateral commercial relationships between the two countries stand at $100 billion, which includes $70 billion of Canadian portfolio investment into India.
In 2020, Canadian direct investment in India amounted to $2 billion. Canadian portfolio investment in India is estimated to have grown more than 50% over the past five years, reaching about $27 billion.
With inputs from PTI.
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