Canada's Carney Highlights Progress in India Ties Amid Push to Cut US Dependence
Canadian Prime Minister Mark Carney emphasized improvements in Canada-India relations as part of a strategy to reduce reliance on the US, amid recent US-Canada trade tensions. He highlighted renewed trade talks, a free trade agreement with Indonesia, and a roadmap to boost cooperation with India in trade and critical sectors. High-level engagements between officials signal warming ties and a focus on expanding Indo-Pacific partnerships.
Canadian Prime Minister Mark Carney outlined significant progress in strengthening bilateral relations with India, aiming to diversify Canada's trade partnerships and reduce economic dependence on the United States. Following a diplomatic reset beginning with a meeting with Indian Prime Minister Narendra Modi at the G7 Summit, Canada and India have resumed trade negotiations after a suspension prompted by earlier political tensions. High-level visits, including Canada's Foreign Minister Anita Anand's trip to India, have led to a roadmap boosting cooperation in trade, critical minerals, and energy. Carney framed this development within Canada's broader Indo-Pacific economic strategy, citing additional agreements with Indonesia and talks with other Asian nations. Despite recent trade tensions with the US and the termination of trade negotiations by President Trump, Canada is committed to doubling non-US exports within the next decade. The effort seeks to leverage the Indo-Pacific's economic growth, which represents 60% of the global economy, while also building economic resilience domestically. Bilateral trade with India reached approximately $23.66 billion in 2024, making India Canada's seventh-largest trading partner. The potential Canada-India Comprehensive Economic Partnership Agreement (CEPA) could further increase trade and GDP growth. The warming relationship is marked by restoring diplomatic missions and planning attendance at India's AI Impact Summit in 2026, signaling enhanced strategic and economic ties between the two democracies.
