Key Takeaways:
- Bilateral tensions between India and Canada threaten to hurt trade ties
- Canada has accused the Indian Government of killing pro-Khalistan leader Hardeep Singh Nijjar
- After Canada expelled a senior Indian diplomat, New Delhi retaliated by doing the same
YEREVAN (CoinChapter.com) — In a significant escalation of tensions between Canada and India, the two G20 countries have expelled each other’s senior diplomats from their national capitals.
Ottawa dismissed Pavan Kumar Rai, the Research and Analysis Wing (RAW) head in Canada. He is accused of assassinating pro-Khlaistan Sikh separatist leader Hardeep Singh Nijjar. In retaliation, the Indian Ministry of External Affairs has asked the Canadian intelligence agency chief in India, Olivier Sylvestere, to leave the country within five days.
The Khalistan Movement is a separatist project which demands a separate country for Sikhs in the Indian state of Punjab. The movement has gained popularity in Canada, which has caused concern for New Delhi.
While the Indian Government demands Canada crack down on those groups, Ottawa has refused to act. Trudeau’s Government has cited freedom of speech and expression as reasons for its inaction.
Canada Expels Indian Diplomat
The latest escalation of tensions came after Canadian Prime Minister Justin Trudeau claimed there is “credible” intelligence tying Indian government agents to the assassination of a Canadian citizen.
The National Intelligence Agency (NIA) of India had designated Nijjar as a terrorist. He was wanted in four NIA cases about Sikh radicalism.
“Over the past number of weeks Canadian security agencies have been actively pursuing credible allegations of a potential link between agents of the government of India and the killing of a Canadian citizen, Hardeep Singh Nijjar… Any involvement of a foreign government in the killing of a Canadian citizen on Canadian soil is an unacceptable violation of our sovereignty”
Trudeau said.
Trudeau also said he discussed the issue with Indian Prime Minister Narendra Modi at last week’s G-20 meeting in New Delhi.
Canadian Foreign Minister Mélanie Joly also confirmed that Prime Minister Trudeau had addressed this matter with US President Joe Biden and UK Prime Minister Rishi Sunak. Additionally, she noted that she will present the matter to the G7 members during their meeting next week, just before the commencement of the United Nations General Assembly.
The former chief of the pro-Khalistan outfit Khalistan Tiger Force (KTF) was a Canadian citizen. Nijjar was shot dead at Guru Nanak Sikh Gurudwara in British Columbia in June this year, where he served as the president of the religious institution.
India expels senior Canadian diplomat: Denies role in Hardeep Singh Nijjar’s assasination
India has strongly denied Justin Trudeau’s allegations that it had any role in the death of a Canadian Khalistani leader Hardeep Singh Nijjar.
In an official statement, India’s Ministry of External Affairs called Ottawa’s claims “absurd and motivated”.
“We have seen and reject the statement of the Canadian Prime Minister in their Parliament, as also the statement by their Foreign Minister…Such unsubstantiated allegations seek to shift the focus from Khalistani terrorists and extremists, who have been provided shelter in Canada and continue to threaten India’s sovereignty and territorial integrity. The inaction of the Canadian Government on this matter has been a long-standing and continuing concern,”
the Indian MEA said.
India also clarified that Canadian political figures have openly expressed sympathy for proKhalistan groups, which remains a matter of deep concern.
New Delhi also called on the Government of Canada to take prompt and effective legal action against all anti-India elements operating from their soil.
In a game of tit-for-tat, New Delhi announced the expulsion of the senior Canadian diplomat. The Indian Foreign Ministry cited interference in internal matters and Canada’s “involvement in anti-India activities” as the reason for the expulsion.
India-Canada trade ties in jeopardy
The escalation of diplomatic tensions has cast a clout over Canada-India trade ties. Before the recent events, the two nations hoped to outline a trade deal by the end of 2023. However, since then, the sides have suspended talks on the agreement.
While Canada provided few details regarding this decision, India cited “certain political developments.”
The trade relationship between India and Canada has witnessed notable growth in recent years. Trade volumes surged to $8.16 billion during the 2022-23 fiscal year.
India is Canada’s tenth-largest trading partner. Exports to Canada were $4.25 billion in 2022, according to the United Nations COMTRADE database on international trade. In return, Canada exports goods worth $4.06 billion to India.
Meanwhile, the Canadian dollar rate has slightly spiked since tensions flared up. It currently fetches INR 61.9042 in the market.
As the India-Canada bilateral ties go through the most turbulent phase in recent history, trade between the G20 economies could suffer.
