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

Why the agricultural sector is hoping cooler heads prevail in the rising diplomatic tensions between Canada and India in the Hardeep Singh Nijjar case.

Allegations that there is evidence that agents of the Indian government may have been involved in the June murder of a Canadian citizen are putting into question relations with the aspiring superpower, including trade.

Prime Minister 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.