INDO-PACIFIC STRATEGY

1. Context 

2. Key points

• Both sides appear keen to draw a line under the bitterness that has dogged their relationship over the last few years and Canada's freshly minted Indo-Pacific strategy, which has attracted notice for its unusually blunt language against China seems to have provided an appropriate opening.
• The two Ministers expressed interest in deepening collaboration across domains and look forward to the Early Progress Trade Agreement (EPTA).
• It welcomed Canada's Indo-Pacific strategy, given the shared vision of a free, open and inclusive Indo-Pacific.
• The Canadian side said they discussed strengthening the economic partnership advancing security cooperation, facilitating migration and mobility and growing our strong people-to-people ties.
• The Ministers also discussed furthering Canada and India's cooperation in the Indo-Pacific, following the announcement of Canada's Indo-Pacific Strategy in November.
• None of the issues that have strained ties, such as Khalistani activities in Canada found mentioned in the official statements.

3. Embrace of Indo-Pacific

• Canada's Indo-Pacific strategy was released last November, amid domestic and International calls for Ottawa to join the US-led alliance against China and stand for the "shared interests and values" of Western democracy.
• Canada, 20 per cent of whose population originates in the Indo-Pacific region, is the last G7 nation to embrace the concept of the Indo-Pacific it has been more comfortable earlier with "Asia Pacific".

3.1. The three-way deal

• Prime Minister Justin Trudeau, who has been in office since 2015, found Canada's historically soft policy on China upended in December 2018, when Canadian authorities arrested Meng Wanhou, a top executive of the Chines telecom giant Huawei, for extradition to the United States.
• Days later, China detained two Canadians in apparent retaliation.
• Three years later, after a three-way deal between China, Canada and the US, both countries returned each other's nationals.
• With a lot of economic interests at stake, Canada continued to make efforts to repair ties with China.
• But the ruling Liberal Party found itself increasingly out of step on this with the anti-China mood at home as well as with its allies, especially the US.

4. Change in Canada's China Policy

• Last year, a series of steps signalled a change in Canada's China Policy, including a sudden tightening of investment rules to prevent Chinese state companies from taking control of its critical minerals and mines industry.
• Trudeau's government suggested the basis for this decision was an assessment of threats to national security. It also banned Huawei 5G.
• Canada's Parliament passed a resolution to declare China's treatment of its Uighur minority as "genocide".
• Against this fast-evolving background, Canada announced its Indo-Pacific strategy reportedly three years in the making at the end of 2022.

5. Features of the strategy

• China is an increasingly disruptive global power. Key regional actors have complex and deeply intertwined relationships with China.
• Canada's Indo-Pacific Strategy is informed by its clear-eyed understanding of this global China and Canada's approach is aligned with those of our partners in the region and around the world.
• China increasingly disregards the same international rules and norms that have helped China's rise.
• It appears several times about its dependence on China: Canada cannot ignore China's "sheer size" China remains Canada's main export destination.
  So cooperation is necessary to address issues such as climate change and health. Plus, the Chinese economy "offers significant opportunities for Canadian exporters".
• In short, Canada is saying it will both "Unapologetically" defend its national interest and cooperate with China when required.

5.1. Objectives

1. Promote peace, resilience and Security
2. Expand trade, investment and supply chain resilience
3. Invest in and connect people
4. Build a sustainable and green future
5. Be an active and engaged partner to the Indo-Pacific

6. Canada-India relations

• Despite a bilateral relationship "Underpinned", according to an MEA brief, "by shared values of democracy, Pluralism, expanding economic engagement, regular high-level interactions and long-standing people-to-people ties", ties have been in the sick bay for several years.
• The big issue for India is the safe haven that Canada has been for separatist Khalistani groups and what India sees as the Liberal Party's pandering to these groups for votes.
• Diaspora Sikhs are well represented in the Trudeau government. Some of them are politically supported by pro-Khalistan groups.
• Jagmeet Jimmy Dhaliwal whose New Democratic Party supports Trudeau's minority government in Parliament is viewed with suspicion by the Indian establishment.
• Trudeau's visit to India in 2017 was a diplomatic disaster over the Khalistan issue.
  Last year, New Delhi objected to Canada permitting a Khalistani secessionist "referendum" in the Sikh diaspora and hit back with an advisory against travel in Canada warned against hate crimes.
• Last month, a Hindu temple near Toronto was vandalised and defaced with anti-India graffiti.
• Concerns that Canada is slow to act against anti-India elements on its soil have been a constant irritant in the relationship.
• Still, both countries seem to realise that any attempt to restore bilateral ties will need to surmount Canada's vote-bank restraints and India's security concerns.

• Though not spelt out, there could also be a defence and security component with Canada's resolve to participate more in maritime security and exercises in the Indo-Pacific and deeper counter-terrorism cooperation than exists now.
• The under-negotiation EPTA is seen as a stepping stone to a comprehensive economic partnership agreement and may pave the way for a wider reset of ties. Whether this will help to "decouple" from China is another question.

For Prelims & Mains