Trudeau’s resignation comes at a time when Canada-India relations are already strained, particularly following the allegations surrounding the killing of Khalistani activist Hardeep Singh Nijjar. Trudeau had accused India of making a “massive mistake” by allegedly killing Nijjar on Canadian soil, although his government has yet to provide concrete evidence to support these claims. India has vehemently denied these accusations, and with Trudeau’s resignation, there is potential for a new phase in diplomatic relations between the two countries.
Implications for Policy and Diplomacy
If the Liberal Party remains in power with a new leader, Canada’s policies may largely align with those of Trudeau, potentially continuing tensions with India. However, if the Conservatives take over, they might adopt a different stance, possibly focusing on economic partnerships and shared geopolitical concerns with India. Despite this, Conservative leader Pierre Poilievre’s past actions, including pulling out of a Diwali event, have raised concerns among Canada’s Hindu community. Some critics have labeled Poilievre’s decision “absolutely disgraceful,” and how he handles the relationship with India remains uncertain.
Trade and Economic Relations
Under Trudeau’s leadership, trade between Canada and India reached $8.4 billion by the end of fiscal year 2024, showing modest growth compared to the previous year. Canada exports minerals, potash, pulses, and industrial chemicals to India, while India sends pharmaceuticals, marine products, and electronic equipment to Canada. The change in leadership could influence ongoing trade negotiations, particularly the Comprehensive Economic Partnership Agreement (CEPA) currently being discussed between the two countries. For now, neither country has imposed tariffs or retaliatory economic measures.
Impact on Immigration and Diaspora
Trudeau’s policies also had significant effects on Canada’s immigration system. One of his key moves was ending the popular fast-track study visa program (SDS), which impacted many international students, especially from India. The Canadian government has reduced the number of international student permits by 35% this year, with further reductions planned for the next year. India remains the largest source of foreign students in Canada, with approximately 427,000 Indian students currently in the country. In contrast, opposition leader Poilievre has criticized Trudeau’s approach and has promised a return to a more selective immigration system, aiming to attract the most promising students. Poilievre also blamed Trudeau for damaging relations with India.
Justin Trudeau’s resignation as Prime Minister marks a significant turning point in Canadian politics and diplomacy. The potential change in leadership may reshape Canada’s approach to its relationship with India, affecting diplomatic, economic, and immigration policies. How these shifts will impact Canada-India relations remains to be seen, depending on the new leader of the Liberal Party or if the Conservatives assume power.
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