Daily Current Affairs : 22-September-2023
The longstanding bilateral ties between India and Canada have taken a nosedive in recent times, marked by canceled negotiations on a bilateral free trade agreement and growing tensions surrounding pro-Khalistan groups in Canada.
Pro-Khalistan Groups in Canada
Pro-Khalistan Movement
- Pro-Khalistan groups advocate for a separate Sikh homeland called Khalistan, including parts of India’s Punjab state.
- India regards this movement as a national security threat, and some affiliated groups are listed as terrorist organizations.
Activities of Pro-Khalistan Groups in Canada
- Banned organizations like Sikh for Justice have been implicated in attacks on Indian missions, anti-India activities, and the desecration of temples in Canada.
- Canada’s inaction in reining in these separatist elements has strained relations.
Canada’s Response
- Canada has defended the freedom of peaceful protest and expression despite India’s concerns over growing Khalistani activities within its borders.
The Hardeep Singh Nijjar Case
Who Was Hardeep Singh Nijjar?
- Nijjar was an advocate for Khalistan and supported its creation.
- He was listed as a UAPA terrorist by India’s Home Ministry in 2020.
Bilateral Relations
Historical Ties
- Canada and India share a history of democracy, pluralism, and strong interpersonal connections.
- Canada has a significant Indian-origin population, comprising around 4% of its total citizens.
Ministerial Dialogues
- The two nations maintain a strategic partnership with dialogues on foreign policy, trade, finance, energy, and more.
Working Groups
- Regular working groups focus on counter-terrorism, security, agriculture, education, and science and technology.
Trade Relations
Trade Volume
- In 2022, India was Canada’s 10th largest trading partner.
- Bilateral trade was valued at $8 billion in the last financial year.
Comprehensive Economic Partnership Agreement (CEPA)
- Both countries were negotiating CEPA to boost trade and investment.
- Canada paused talks on CEPA recently, citing unresolved issues.
Trade Balance
- In 2022-23, imports and exports were nearly balanced, with India enjoying a tiny trade surplus.
Major Trade Items
- India imports energy products, fertilizers, and lentils from Canada.
- Exports to Canada include consumer goods, garments, and engineering products.
Implications for Trade Relations
- India’s top imports from Canada include mineral fuels, pulp, and edible vegetables, constituting nearly half of total imports.
- Exports to Canada, including pharmaceuticals and machinery, account for 30% of total exports.
- The significance of masur dal (red lentils) in India’s agri imports from Canada may be affected by fluctuations in Canadian crop sizes.
Canadian Investments in India
- Canada is among India’s top foreign investors, with over $3.6 billion invested since 2000.
- Canadian Pension Funds have substantial investments in Indian markets, including India’s stock and debt markets.
Human Ties
- India’s sizeable diaspora in Canada, particularly the Sikh community, plays a significant role in maintaining cultural and familial bonds.
- The influx of Indian students to Canada has surged, with Indian students accounting for 40% of total overseas students in 2022.
Development Initiatives
- While bilateral development assistance from Canada to India ended in 2006, Canada continues to support development projects through NGOs and multilateral organizations.
Partnerships and Organizations
- Canada and India collaborate in various multilateral fora, addressing global challenges together.
Implications for Sikhs
- The deteriorating relations could impact the economic interests of Sikh families in India’s Punjab, as many have relatives in Canada who remit significant funds back home.
Important Points:
India-Canada Relations: Recent Strains and Implications
Recent Strains in Relations:
- Cancellation of negotiations on a bilateral free trade agreement.
- Accusations from Canada regarding India’s involvement in the killing of Khalistani terrorist Hardeep Singh Nijjar.
- Presence and activities of pro-Khalistan groups in Canada.
Pro-Khalistan Groups:
- Advocating for a separate Sikh homeland called Khalistan.
- Involvement in attacks on Indian missions, anti-India activities, and temple desecrations.
- Some affiliated groups listed as terrorist organizations.
Canada’s Response:
- Canada’s defense of freedom of peaceful protest and expression despite India’s concerns.
Hardeep Singh Nijjar:
- Outspoken supporter of Khalistan.
- Listed as a UAPA terrorist by India’s Home Ministry in 2020.
Bilateral Relations:
- Historical ties based on democracy, pluralism, and strong interpersonal connections.
- Significant Indian-origin population in Canada (about 4%).
- Strategic partnership with dialogues on foreign policy, trade, finance, energy, etc.
- Regular working groups on counter-terrorism, security, agriculture, education, science, and technology.
Trade Relations:
- India’s ranking as Canada’s 10th largest trading partner in 2022.
- Bilateral trade valued at $8 billion in the last financial year.
- Negotiations on Comprehensive Economic Partnership Agreement (CEPA).
- Pause in CEPA talks due to unresolved issues.
- Nearly balanced trade with a tiny trade surplus for India.
Key Trade Items:
- India’s top imports from Canada include mineral fuels, pulp, and edible vegetables.
- Exports to Canada include pharmaceuticals and machinery.
- Significance of masur dal (red lentils) in India’s agri imports from Canada.
Canadian Investments in India:
- Canada’s position as India’s 17th largest foreign investor.
- Canadian Pension Funds’ substantial investments in Indian markets.
Human Ties:
- Indian diaspora in Canada, particularly the Sikh community.
- Surge in Indian student numbers in Canada.
Development Initiatives:
- Bilateral development assistance from Canada to India ended in 2006.
- Continued support for development projects through NGOs and multilateral organizations.
Partnerships and Organizations:
- Collaboration in various multilateral fora to address global challenges.
Implications for Sikhs:
- Impact on the economic interests of Sikh families in India’s Punjab with relatives in Canada.
Why In News
In the aftermath of the G20 Summit, India and Canada have seen a sharp decline in their bilateral relations, with both nations deciding to terminate discussions on a potential bilateral free trade agreement. Additionally, tensions have flared as Canada has leveled allegations against India, implicating the country in the controversial case surrounding the assassination of Khalistani militant Hardeep Singh Nijjar.
MCQs about India-Canada Relations
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What is the primary cause of recent strains in India-Canada relations?
A. Disagreements over trade agreements
B. Accusations of India’s involvement in Khalistani activities
C. Differences in foreign policy
D. Trade imbalance
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Which banned organization is mentioned as being involved in anti-India activities and attacks on Indian missions in Canada?
A. United Nations
B. Gavi Vaccine Alliance
C. Sikh for Justice
D. World Trade Organization
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What is the significance of the Comprehensive Economic Partnership Agreement (CEPA) in India-Canada relations?
A. It aims to enhance cultural exchange between the two countries.
B. It focuses on strengthening counter-terrorism efforts.
C. It is a trade agreement that significantly reduces or eliminates customs duties.
D. It addresses human rights issues in both nations.
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Why is the growing number of Indian students in Canada significant in the context of India-Canada relations?
A. It fosters cultural exchanges between the two countries.
B. It has led to an increase in Canada’s foreign investments in India.
C. It is a source of economic strain in the relations.
D. It has resulted in the closure of Canadian educational institutions in India.
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