Despite the diplomatic row, trade between Canada and India has grown but trade experts say it is quite small relative to the size of India’s economy.
Two-way goods and services trade touched about C$31 billion (US$21.98 billion) in 2024, largely in Canada’s favor due to its C$16 billion in services exports. In contrast, Canada’s total bilateral trade with China was almost four times bigger in 2024.
Relations between Canada and India began to improve following Modi’s meeting with Carney on the sidelines of the G7 summit in June.
Earlier on Sunday, Carney said he considers India a reliable trading partner, although he acknowledged there could be some “source of friction”.
He said Canada and India have a strong commercial relationship and he would be keen to scale that up.
“What we’re looking to do is to put that (commercial relationship) on a sound footing through a potential trade agreement between the two countries, which gives protections to our businesses, protections to Indian businesses, a clear set of rules, dispute mechanisms, and others, and build on those opportunities”.
Carney also met with Brazilian President Luiz Inácio Lula da Silva at the G20 summit and the leaders agreed to intensify negotiations on a Canada-Mercosur free trade agreement. Mercosur includes Brazil, Argentina, Paraguay and Uruguay.
(US$1 = 1.4101 Canadian dollars)
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