Canada PM Mark Carney hails ‘progress’ in mending ties with India as Ottawa seeks to cut US trade reliance

CANADIAN Prime Minister Mark Carney on Saturday emphasised the “progress” his government has made 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 highlighted that his strategy to diversify away from the US is already showing results, specifically citing the “progress which we have been making with India.”

He added that Canadian Foreign Minister Anita Anand and other cabinet members have been actively engaging with their Indian counterparts to push this plan forward, ANI reported.

Mark Carney's remarks came after US President Donald Trump terminated all trade negotiations with Ottawa last week, accusing Canada of “egregious behaviour.”

Focused diversification strategy

The Canadian PM noted that his government's approach has a dual focus — strengthening the domestic economy while simultaneously building these partnerships abroad and reducing the country's reliance on Washington.

In a statement, the Prime Minister's Office said, “As we pursue our ambitious new mission to double our non-US exports in the next decade, Canada's new government is focused on working with partners across the Indo-Pacific to unlock new opportunities for Canadian workers and businesses.”

Canada's efforts to diversify its trade relations are driven by the need to reduce its dependence on the US market, especially with the Trump administration's tariffs and escalating trade tensions. Hence, Canada is seeking to explore trade opportunities in the Indo-Pacific region, and particularly India, to tap into its growing economy and large market.

“The Indo-Pacific presents enormous opportunities for Canadian workers and businesses. Canada is ready to seize these opportunities and play to win,” ANI quoted PM Carney.

Mending Canada-India relationship

Since taking office in March of this year, Carney has led a gradual reset in Canada's relationship with India, which had significantly deteriorated under the 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 flatly rejected those claims, calling them “absurd” and “motivated.”

The situation worsened in October 2023 when Canada requested a waiver of immunity for six Indian diplomats to allow 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 improvement in the ties

A thaw in relations between India and Canada became evident after PM 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 restoration of high commissioners to both capitals, signalling a crucial step toward normalising diplomatic ties.

Since then, a “systematic approach” to rebuilding ties has been visible through a series of recent high-level visits.

In October, Foreign Minister 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 discussions with Canada's Minister of International Trade, Maninder Sidhu.

More senior official visits from both sides are expected to take place later this year. India has also invited Carney to attend the AI Impact Summit in New Delhi in February next year, ANI reported.