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

Canadian Prime Minister Mark Carney on Saturday emphasised the “progress” his authorities has made in rebuilding ties with India, as a part of a strategic effort to scale back Ottawa’s dependence on commerce with the USA.

Chatting with reporters in Gyeongju, South Korea, after the Asia-Pacific Financial Cooperation (APEC) summit, Mark Carney highlighted that his technique to diversify away from the US is already exhibiting outcomes, particularly citing the “progress which we’ve been making with India.”

He added that Canadian International Minister Anita Anand and different cupboard members have been actively partaking with their Indian counterparts to push this plan ahead, ANI reported.

Mark Carney’s remarks got here after US President Donald Trump terminated all commerce negotiations with Ottawa final week, accusing Canada of “egregious behaviour.”

Targeted diversification technique

The Canadian PM famous that his authorities’s strategy has a twin focus — strengthening the home financial system whereas concurrently constructing these partnerships overseas and lowering the nation’s reliance on Washington.

In an announcement, the Prime Minister’s Workplace mentioned, “As we pursue our formidable new mission to double our non-US exports within the subsequent decade, Canada’s new authorities is targeted on working with companions throughout the Indo-Pacific to unlock new alternatives for Canadian employees and companies.”

Canada’s efforts to diversify its commerce relations are pushed by the necessity to cut back its dependence on the US market, particularly with the Trump administration’s tariffs and escalating commerce tensions. Therefore, Canada is looking for to discover commerce alternatives within the Indo-Pacific area, and significantly India, to faucet into its rising financial system and enormous market.

“The Indo-Pacific presents huge alternatives for Canadian employees and companies. Canada is able to seize these alternatives and play to win,” ANI quoted PM Carney.

Mending Canada-India relationship

Since taking workplace in March of this yr, Carney has led a gradual reset in Canada’s relationship with India, which had considerably deteriorated beneath the previous Prime Minister, Justin Trudeau.

Tensions between the 2 nations escalated in September 2023 after Justin Trudeau instructed the Canadian Parliament that there have been “credible allegations” linking Indian brokers to the killing of pro-Khalistan determine Hardeep Singh Nijjar in British Columbia. Nevertheless, India flatly rejected these claims, calling them “absurd” and “motivated.”

The scenario worsened in October 2023 when Canada requested a waiver of immunity for six Indian diplomats to permit questioning associated to felony exercise within the nation. This led to India withdrawing these diplomats and subsequently expelling six Canadian diplomats in a reciprocal transfer.

Indicators of enchancment within the ties

A thaw in relations between India and Canada grew to become evident after PM Carney met Indian Prime Minister Narendra Modi on the sidelines of the G7 Leaders’ Summit in Kananaskis in June this yr. The high-level interplay resulted within the restoration of excessive commissioners to each capitals, signalling a vital step towards normalising diplomatic ties.

Since then, a “systematic strategy” to rebuilding ties has been seen by means of a sequence of current high-level visits.

In October, International Minister Anita Anand visited India, the place she met Exterior Affairs Minister S Jaishankar and Commerce and Trade Minister Piyush Goyal. Across the identical time, Piyush Goyal additionally held discussions with Canada’s Minister of Worldwide Commerce, Maninder Sidhu.

Extra senior official visits from either side are anticipated to happen later this yr. India has additionally invited Carney to attend the AI Affect Summit in New Delhi in February subsequent yr, ANI reported.