Analysts Say Diplomatic Stand-off Is Unlikely To Impact Trade Ties In The Long-Term

A day after India withdrew its High Commissioner and several other diplomats from Canada and expelled six top Canadian diplomats from New Delhi, the Canadian government has hinted at more possible steps against India. “Nothing is off the table”, said Melanie Joly, the Canadian Foreign Minister when asked if Canada would consider possible sanctions against India. “We will continue to engage with our Five Eyes partners, we will continue to engage with all the G7 partners, and everything is on the table”, she added. Analysts feel an impact on the trade ties could result only if governments impose sanctions or restrictions. However, with Canada as the ninth largest trading partner of India with bilateral trade nearing $8.5 bn in 2023-24, an impact on trade ties is unlikely. Canadian pension funds have invested nearly $50 bn in India in the past few years and agriculture is also one of the cornerstones in trade between the two nations.