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Foreign Affairs Minister Anita Anand says the economy is becoming the primary focus of Canada’s relationships in the Indo-Pacific — a shift that appears linked to Canada’s recent moves to overcome its security dispute with India.
Anand was in Japan and Malaysia this week for her first trip to the region since taking over as foreign minister in May. Her message coming out of that trip was that Canada’s foreign policy is shifting — though not abandoning — the priorities set by the previous Liberal government of former prime minister Justin Trudeau.
“It is important for us to revisit our policy — not only in the Indo-Pacific but generally speaking — to ensure that we are focusing not only on the values that we have historically adhered to,” Anand said Thursday in a teleconference from Malaysia.
“Foreign policy is an extension of domestic interest and particularly domestic economic interests. This is a time when the global economy is under stress.”
The Trudeau government put language on environmental protection, labour standards and gender equality in its trade agreements.
Goldy Hyder, head of the Business Council of Canada, said that made Canada appear “a bit preachy” to other countries. He said Canada has to be respectful in the way it stands up for democratic values.
A focus on the economy is quickly becoming a defining trait of the government of Prime Minister Mark Carney, a former central banker who is intent on building up Canada’s domestic capacity and reshaping its trade and security plans to rely less on the United States.
Carney has been mostly focused on Europe so far; he has visited the continent three times since March. Anand’s visit this week “sets the stage” for Carney’s planned visits this fall to the Association of South East Asian Nations leaders’ summit in Malaysia and the APEC forum in South Korea, said Vina Nadjibulla, research vice-president for the Asia Pacific Foundation.
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Anand visited Tokyo to sign an information-sharing agreement that could lead to defence procurement deals, before heading to Malaysia for a meeting of the Association of South East Asian Nations, or ASEAN.
Her visit also comes as Canada tries to restore ties with India after two years of diplomatic chill following the 2023 shooting death of Sikh activist Hardeep Singh Nijjar near Vancouver — a crime Ottawa linked to agents of the Indian government.
The RCMP said last year it had evidence of New Delhi playing a role in acts of homicide, coercion and extortion targeting multiple Sikh-Canadians. Canada subsequently expelled six senior Indian diplomats; New Delhi expelled six Canadian diplomats in response.
India claims Canada is enabling a separatist movement that calls for a Sikh homeland — Khalistan — to be carved out of India, and calls that a violation of its sovereignty.
Carney began to thaw the relationship in June. He invited Indian Prime Minister Narendra Modi to the G7 summit in Alberta and the two leaders agreed to reinstate their high commissioners. The two countries are also starting security talks.
As the world’s most populous country, India is seen as a critical partner as Carney pushes to disentangle Canada from its heavy reliance on trade with the U.S. The two countries have engaged in on-and-off negotiations on a trade deal since 2010, with frequent pauses — including Ottawa’s suspension of talks after the Nijjar assassination.
Hyder said India’s corporate sector has been urging Canadian corporations to continue expanding trade in spite of the tensions between Ottawa and New Delhi.
“One day this is all going to be resolved, and we don’t want to have lost all that time,” he said.
He said the reduced number of Canadian diplomats has made it more challenging for members of his council to engage in India, because there are fewer trade commissioners in India to help Canadians connect companies with contacts and opportunities on the ground.
Hyder, who spoke just before leaving for a fact-finding mission to India, said the appointment of high commissioners will set the tone for eventual trade talks. He said a trade deal would be helpful but is not “a precondition” for boosting trade, and suggested Ottawa should focus on scaling up the roads and ports needed to meet Asia’s demand for Canadian commodities.
Vijay Sappani, a fellow with the Macdonald-Laurier Institute, said an India trade deal could come quite soon.
“If we put in the right efforts on our end, I feel like we could probably get a free-trade agreement done before the end of this year, if not (the first quarter) of next year,” said Sappani. “There is no Indo-Pacific without India, and if we want to play in the global markets, where we’ve been kind of shunned … then we need to step up to the plate.”
Sappani said Ottawa should seek assurances from India that it will never play a role in violence in Canada. In turn, he said, Ottawa could commit to not having politicians show up at any event where there are displays commemorating those who took part in violence in support of the Khalistan movement.
“That is the biggest thing that we Canadians can do to stop some level of irritants within the Indian side, and trade definitely will come on back on the table,” he said.
Anand would not say how soon Canada and India could appoint top envoys, or start trade talks.
“We will take the relationship with India one step at a time,” she said Thursday. “That timeline will be steady, not immediate.”
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