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Canada’s poor relations with India underscore short-term thinking and failures
Both sides expelled each other’s diplomats and imposed other measures as the dispute escalated. The effects have been felt commercially and socially on both sides of the Pacific. (File Photo By Prime Minister’s Office (GODL-India), GODL-India/Wikimedia Commons)
Canada’s bilateral relations with India have hit a rough patch.
There have been severe strains for years but they hit a new low last September when Prime Minister Justin Trudeau said agents of the government of India were involved in the assassination of Hardeep Singh Nijjar, a Canadian citizen and a Sikh separatist leader. Three men were charged in May with his murder while police continue to probe the Indian link.
Both sides expelled each other’s diplomats and imposed other measures as the dispute escalated. The effects have been felt commercially and socially on both sides of the Pacific.
Regardless of where one sits in assigning blame for the frosty relations, it’s virtually impossible to argue that governments in Canada have maximized their long-term relationship with India for the benefit of all Canadians.
This is particularly important because the spat has also thrown a wrench in Ottawa’s plans to make India the centrepiece of its Indo-Pacific strategy – part of a move by many Western countries, including the U.S. and the EU, to court India to decrease their supply chain reliance on China and counter Beijing’s rising influence in the region.
A long history of disputes
Those with a short memory might assume we’re at rock bottom in terms of bilateral relations. However, India’s use of CANDU reactor parts for its first nuclear weapon, which was tested in 1974, created a strong distrust of India by Canadian diplomats and sent relations into a deep freeze.
The 1985 bombing of an Air India flight, which killed all 329 passengers aboard, including 280 Canadians, and the subsequent poor handling of the investigation, which led to no convictions, further strained ties.
For many years, some Canadian politicians have been criticized for appearing at Sikh diaspora events where those who advocate violence are celebrated. This set off a deep-seated, multi-decade skepticism among Indian policymakers about Canada’s seriousness in combating violent extremism.
Small steps have been taken over the years to mend irritants in the bilateral relationship. However, governments at all levels in Canada, have not acted in a co-ordinated fashion to maximize the bilateral relationship.
Canada’s decision in 2015 to rescind a multi-decade ban on exporting nuclear technologies and fuel to India should have thawed relations and driven greater commercial benefits.
However, while Canadian firms now can export uranium to India, Canada missed its window to sell the next generation of CANDU nuclear technology, despite India’s expressed interest in the technology, given its familiarity with the earlier generation.
The Ontario government’s decision in 2013 not to build new nuclear power plants with the Canadian-made technology also concerned buyers in India and other countries. They were worried that the technology would not have staying power – an important consideration given the magnitude of the capital investment and maintenance required.
The CANDU technology, once heralded as world-leading, has had limited uptake. This is tragic for Canada’s economy and our global policy leadership, given the world is now aggressively seeking net-zero carbon emissions, as well as affordable and scalable energy options to combat climate change.
Short-sightedness on student visas
Relations have also been strained over international students in Canada – the majority of whom come from India.
Earlier this year, the Indian High Commissioner to Canada warned that Indian students granted visas to study in Canada are often “duped” by post-secondary institutions, sometimes with tragic consequences.
Further, the CBC found that the types of programs to which foreign students are being steered do not align with our labour market needs.
This has foundational roots in Canada’s inability to co-ordinate policies at all levels of government and with other key stakeholders.
International students have historically buoyed Canada’s economy. Their higher fees solidified the balance sheets of many post-secondary institutions and they filled labour market needs, especially in value-add roles.
The 2008 decision allowing international students to apply for permanent residency was rational, given Canada’s demographic challenges in the context of a highly competitive global economy for top talent.
But, misalignment between the provincial and federal governments has led to disastrous results.
The provinces – responsible for accrediting post-secondary institutions – saw the short-term economic benefits of international students and began rubber-stamping the approval of questionable schools. This essentially created a loophole for young foreigners to access Canadian permanent residency.
The federal government – responsible for immigration – did not study the implications of these provincial decisions and aggressively increased their target numbers, especially for student visas, despite the lack of options for both quality education and short-term housing, which created social friction.
The ongoing lack of alignment to long-term labour market needs puts the broader system and our economy at risk.
These diplomatic, immigration and intergovernmental policy failures have had implications for Canadian businesses looking to diversify their export markets, especially to India which represents a large and growing market with increasing demand for our goods and services.
They have also impacted the number of Indians considering emigrating, especially those whom Canada and other countries dependent on immigration for economic growth most covet – students, entrepreneurs and professionals.
Canada needs to change its approach
Ultimately, Canada should have a stronger and deeper relationship with India from strategic and self-interested perspectives. Other leading economies such as the U.S. and the EU have courted trade and investment with India because they see it as both a strong hedge against China’s regional dominance and a partner in technology, security and commerce.
What emerges from a study of Canada’s bilateral relationship with India is that our system of governance lacks the co-ordination and long-term focus at all levels of government, and with other stakeholders such as universities and the private sector, to achieve substantial and sustainable goals.
Some politicians seem more interested in short-term political wins, pandering to politically active segments of the diaspora.
Policymakers haven’t done much better: On the one hand, they let antiquated ideology around India’s non-alignment during the Cold War drive diplomatic relations. On the other, they did not resist the irresponsible increase in international students, particularly from India, at the expense of sustainable economic growth.
All levels of government in Canada need to address the serious long-term structural challenges we face in partnership with industry – such as our multi-decade productivity decline and our march toward a net-zero future.
They can do that by demonstrating they can have a long-term, realistic and cohesive approach to Canada-India relations for the benefit of all Canadians.
This article first appeared on Policy Options and is republished here under a Creative Commons license.
