29 March 2026, NIICE Commentary 12397
J.S. Jermiah
Relations between Canada and Nepal have evolved from a primarily aid-based partnership into a multidimensional engagement increasingly driven by migration and diaspora linkages. This Human mobility, particularly student migration, skilled labor flows, and transnational communities, constitutes the central pillar of contemporary Canada–Nepal relations. Nepali migrants in Canada act as informal diplomatic agents through remittances, cultural exchange, humanitarian action, and knowledge transfer. While traditional geopolitical and economic ties remain limited, people-to-people connections have created a resilient and mutually beneficial relationship rooted in human security and opportunity. The article also examines challenges such as brain drain, integration barriers, and policy uncertainty, concluding that sustained cooperation on migration governance and diaspora engagement will be essential to strengthening bilateral ties in the future.
Evolution of Bilateral Engagement
Relations between Canada and Nepal have historically been cordial, grounded in development cooperation, democratic support, and multilateral engagement. Diplomatic ties date back to 1965, from when Canada has maintained a consistent presence in Nepal through aid programs, governance initiatives, and humanitarian assistance. However, unlike Nepal’s relations with its immediate neighbors, which are heavily shaped by geography and security concerns, Canada–Nepal relations have increasingly come to revolve around people rather than states. Migration, education exchanges, and diaspora networks now form the most dynamic dimension of engagement, giving rise to a distinctly people-centric form of diplomacy.
Migration as a Structural Link
Canada’s immigration system, which emphasizes skilled migration, international education, and family reunification, has made it an attractive destination for Nepali nationals. Over the past two decades, the number of Nepali migrants settling in Canada has risen steadily, creating a substantial diaspora community. This mobility has transformed bilateral relations by establishing enduring social and economic linkages independent of formal diplomatic initiatives.
Education-driven migration is particularly significant. Canada has emerged as one of the leading destinations for Nepali students seeking higher education abroad. Many enter on study permits and subsequently transition to permanent residency through structured immigration pathways, converting temporary mobility into long-term. These individuals often maintain close ties with Nepal through family connections, cultural activities, and periodic visits, thereby sustaining transnational networks.
Remittances and Economic Interdependence
Remittances constitute a major economic dimension of this migration-centered relationship. Nepal is one of the most remittance-dependent economies in the world, with inflows accounting for a significant share of its gross domestic product. Although the largest contributions originate from the Gulf region and Malaysia, remittances from Canada are notable for their higher per-capita value due to migrants’ professional employment and comparatively high incomes.
These financial transfers play a crucial role in supporting household consumption, education, healthcare, and small-scale investment in Nepal. At the macroeconomic level, remittances contribute to foreign exchange reserves and economic stability. Thus, migration not only strengthens interpersonal connections but also generates tangible developmental benefits, reinforcing Canada’s importance as a partner beyond traditional aid.
Diaspora as Informal Diplomacy
Nepali diaspora organizations across Canadian cities serve as cultural ambassadors and informal diplomatic actors. They organize community events, promote Nepali heritage, and facilitate integration while maintaining strong links to their homeland. During times of crisis in Nepal, diaspora networks mobilize resources rapidly. Following the 2015 earthquake, Nepali communities in Canada raised funds, coordinated relief shipments, and supported reconstruction efforts, complementing official humanitarian assistance.
Such activities enhance goodwill and foster a sense of shared responsibility between societies. Diaspora engagement also strengthens bilateral relations by creating channels of communication that operate outside formal state institutions, making the relationship more resilient to political fluctuations.
Knowledge Transfer and Brain Circulation
Migration to Canada exposes Nepali professionals and students to advanced technologies, institutional practices, and professional standards. Through return migration, temporary visits, or digital collaboration, this expertise can flow back to Nepal, contributing to capacity building and innovation. Scholars describe this phenomenon as “brain circulation,” emphasizing that skilled migration can produce developmental gains rather than simply depleting human capital.
In sectors such as information technology, healthcare, and education, diaspora professionals often play advisory roles, invest in local ventures, or collaborate with institutions in Nepal. These exchanges demonstrate how migration can function as a conduit for modernization and institutional strengthening.
Soft Power and Mutual Perceptions
People-to-people ties also reinforce soft power. Canada’s global image as a multicultural and inclusive society resonates strongly among Nepalese, enhancing its attractiveness as a destination for study and work. Conversely, the Nepali community contributes to Canada’s diversity, entrepreneurship, and labor market needs, enriching its social fabric.
This reciprocal relationship generates positive perceptions on both sides. Unlike relationships driven primarily by strategic competition or economic dependency, Canada–Nepal ties are grounded in shared values of opportunity, pluralism, and human development.
Policy Context and Emerging Challenges
Migration-centered diplomacy, however, presents several challenges. Nepal faces concerns about brain drain, particularly the outflow of skilled youth, which may weaken domestic institutions and labor markets. Migrants in Canada may encounter difficulties related to credential recognition, employment integration, and social adjustment. Changes in immigration policies or visa regulations could also significantly affect migration flows, thereby influencing bilateral relations.
Competition from other destination countries, including Australia, the United Kingdom, and the United States, further complicates the landscape. Canada’s ability to remain an attractive destination will depend on maintaining accessible pathways to permanent residency, affordable education, and effective integration policies.
Migration and Canada’s Broader Regional Engagement
Migration-driven ties complement Canada’s wider engagement in Asia. Ottawa’s Indo-Pacific outlook emphasizes partnerships that promote stability, prosperity, and democratic governance. Although Nepal is not a major strategic actor, its location in the Himalayan region and its contributions to international peacekeeping give it symbolic importance. Strong diaspora connections provide Canada with a durable and low-cost channel of engagement that does not rely on military or economic advantage.
Future Trajectories of People-Centric Partnership
Migration has fundamentally reshaped Canada–Nepal relations, transforming them from a predominantly aid-based partnership into a multidimensional engagement anchored in human mobility. Students, workers, families, and community organizations now serve as the primary connectors between the two countries, creating dense transnational networks that sustain economic exchange, cultural interaction, and mutual goodwill.
In an era where non-state actors play an increasingly prominent role in international affairs, the Canada–Nepal case illustrates the power of people-centric diplomacy. While challenges such as brain drain and policy uncertainty persist, the overall trajectory suggests that migration will remain the backbone of bilateral ties. Strengthening cooperation on migration governance, diaspora engagement, and knowledge exchange will be essential for ensuring that this relationship continues to deliver benefits for both societies in the decades ahead.
J.S. Jermiah is a Doctoral Researcher in Interdisciplinary Studies (Environment and Governance) at the University of New Brunswick, Canada.
