Canada trades billions in goods with India. As tensions rise, what’s at stake?

globalnews.ca:

Justin Trudeau dropped a bombshell Monday in the House of Commons when he cited “credible” intelligence that agents of Indian Prime Minister Narendra Modi’s government may be linked to the killing of 45-year-old Hardeep Singh Nijjar.Nijjar, a prominent Sikh leader who advocated for the Khalistan movement, was shot dead June 18 outside the Guru Nanak Sikh Gurdwara in Surrey, B.C.Trudeau did not elaborate further on what evidence Canadian intelligence agencies may have.India has strongly denied the allegation, accused Canada of sheltering “Khalistani terrorists and extremists” and warned its citizens in Canada to “exercise utmost caution” due to what it calls “anti-India activities” in the nation.Both nations, which have traded billions of dollars worth of goods over the years, have expelled each other’s diplomats. A former foreign policy adviser to Trudeau says this may be the beginning of a months-long diplomatic spat with India.Here’s what is at stake when it comes to trade.Before the allegation publicly surfaced Monday, trade relations with India were beginning to sour.On Sept.

1, Indian High Commissioner Sanjay Kumar Verma said Ottawa had sought a pause “within the last month” to ongoing preliminary talks for a trade agreement.The two countries have been negotiating a deal since March 2022 that would be restricted to certain industries, instead of spanning the entire economy.The talks followed a five-year hiatus. The countries had entered negotiations in 2010 for a comprehensive deal, but they abandoned the plans in 2017.Then on Sept.