Canadian Prime Minister Mark Carney on Saturday highlighted his government’s “progress” in rebuilding ties with India as part of a strategic effort to reduce Ottawa’s dependence on trade with the United States.
Speaking to reporters in Gyeongju, South Korea, after the Asia-Pacific Economic Cooperation (APEC) summit, Mark Carney emphasized that his strategy to diversify outside the US is already showing results, specifically citing “the progress we’ve made with India.”
He added that Canadian Foreign Minister Anita Anand and other cabinet members are actively working with their Indian counterparts to push the plan forward, ANI reported.
Mark Carney’s comments came after US President Donald Trump ended all trade talks with Ottawa last week, accusing Canada of “outrageous behaviour”.
Targeted diversification strategy
The Canadian prime minister noted that his government’s approach has a dual focus — strengthening the domestic economy while building these partnerships abroad and reducing the country’s dependence on Washington.
In a statement, the Prime Minister’s Office said: “As part of our ambitious new mission to double our exports outside the US over the next decade, Canada’s new government is focused on working with partners in the Indo-Pacific to unlock new opportunities for Canadian workers and businesses.”
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Canada’s efforts to diversify trade relationships are driven by the need to reduce dependence on the U.S. market, especially with the Trump administration’s tariffs and escalating trade tensions. Canada is therefore seeking to explore business opportunities in the Indo-Pacific region, and particularly in India, to take advantage of its growing economy and large market.
“The Indo-Pacific presents tremendous opportunities for Canadian workers and businesses. Canada is ready to seize these opportunities and play to win,” ANI quoted Prime Minister Carney as saying.
Repairs to Canada-India relations
Since taking office in March of this year, Carney has led a gradual reset of Canada’s relations with India, which had deteriorated significantly under former Prime Minister Justin Trudeau.
Tensions between the two nations escalated in September 2023 after Justin Trudeau told the Canadian Parliament that there were “credible allegations” linking Indian agents to the killing of pro-Khalistan figure Hardeep Singh Nijjar in British Columbia. However, India has categorically rejected these claims, calling them “absurd” and “motivated”.
The situation worsened in October 2023 when Canada requested the waiver of immunity for six Indian diplomats to allow for questioning related to criminal activity in the country. This led to India withdrawing these diplomats and subsequently expelling six Canadian diplomats in a reciprocal move.
Signs of improving ties
The rejuvenation in India-Canada relations was evident after Prime Minister Carney met Indian Prime Minister Narendra Modi on the sidelines of the G7 Leaders Summit in Kananaskis in June this year. The high-level interaction resulted in the reinstatement of the High Commissioners in both capitals, signaling a major step towards the normalization of diplomatic relations.
Since then, a “systematic approach” to rebuilding ties has been visible through a series of recent high-level visits.
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In October, Foreign Secretary Anita Anand visited India where she met External Affairs Minister S Jaishankar and Commerce and Industry Minister Piyush Goyal. Around the same time, Piyush Goyal also held talks with Canada’s International Trade Minister Maninder Sidhu.
More visits by senior officials from both sides are expected later this year. India has also invited Carney to attend a summit on the impact of artificial intelligence in New Delhi in February next year, ANI reported.
Key things
- Canada is strategically diversifying its trade relationships, particularly with India, to reduce dependence on the US.
- High-level diplomatic interactions between Canada and India will increase, reflecting a renewed focus on mending ties.
- The Indo-Pacific region, particularly the growing economy of India, presents significant business opportunities for Canada.
