Canada and India Strengthen Ties with Trade Deals Amid Ongoing Tensions

Canadian Prime Minister Mark Carney met with Indian Prime Minister Narendra Modi on Monday to strengthen bilateral ties and address trade agreements amid ongoing tensions over alleged Indian interference in Canada. The visit, which included the signing of several memorandums and a landmark $2.6 billion uranium deal, marks a significant step forward in relations that have been strained since 2023.

The two leaders agreed to aim for a free trade pact by the end of this year, with plans to increase bilateral trade to $70 billion by 2030. The uranium deal, signed between Canadian-based Cameco Corp and India's Department of Atomic Energy, will supply about 22 million pounds of uranium to India for nuclear energy between 2027 and 2035.

The meeting comes amid ongoing tensions over allegations that the Indian government orchestrated the killing of Sikh activist Hardeep Singh Nijjar in Canada. Despite these tensions, both leaders emphasized their commitment to strengthening economic ties. Modi praised Carney for working to reset the stalled bilateral relationship, while Carney reiterated his government's belief in 'principled pragmatism,' acknowledging that not every partner will share all of Canada's values.

During a joint appearance with Modi, Carney stated: 'This is not merely the renewal of a relationship. It is the expansion of a valued partnership with new ambition, focus and foresight — a partnership between two confident countries charting our course for the future.'

The visit also included discussions on other areas such as artificial intelligence, supercomputing, semiconductors, and plans to jointly host a renewable energy summit. Indian firm HCL Technologies announced plans to open two new AI centers in Canada and expand one in Vancouver.

Despite the progress made during Carney's visit, questions over India's role in the assassination of Nijjar remain unresolved. A senior Canadian official stated that if threats and violence from India had not ended, Carney would not have taken this trip. However, Canada's foreign affairs minister Anita Anand told reporters that she did not personally endorse the words used by a senior government official who claimed the campaign of threats and violence had ended.

The visit underscores both countries' efforts to diversify trade away from the United States due to tariff announcements. India recently paused negotiations with the U.S. on a proposed free-trade deal, hoping for greater clarity following the invalidation of President Donald Trump's tariffs.

In addition to the discussions in India, Carney expressed support for strikes on Iran 'with regret' during his visit to Australia. Speaking to reporters in Sydney, Carney called for de-escalation of hostilities in Iran and criticized the US and Israel for acting without engaging the United Nations or consulting with allies, including Canada.

Carney described his discussions with Modi as 'frank' and emphasized the importance of raising issues at the highest levels to ensure cooperation on matters such as extortion or cross-border criminal activity. He noted that high-ranking Canadian officials have been in contact with top Indian defense and national security officials since dialogue was re-established.

The case of four men charged over Nijjar's killing is still before the courts in British Columbia. This week, Canada and India also announced a 'landmark' nuclear energy deal, as well as other deals on critical minerals, space, defense, and education.