Canada Strengthens Ties with India Amid US Trade Tensions

Canadian Prime Minister Mark Carney has underscored the importance of forging new international alliances, particularly with India, in light of recent tensions in trade relations with the United States. Following the termination of trade negotiations by US President Donald Trump, Carney expressed a commitment to building partnerships that will reduce Canada’s reliance on its southern neighbour.

During a press briefing after the Asia-Pacific Economic Cooperation (APEC) summit held in South Korea, Carney highlighted that developing ties with countries in the Asia-Pacific region is crucial. He stated, “There is no better place to do that than in the fastest growing part of the world that represents 60 per cent of the global economy.”

Carney pointed to ongoing discussions with various nations, including a free trade agreement with Indonesia, and talks with the Philippines and Thailand. He noted a “turning point in our relationship with China” as part of Canada’s broader strategy to enhance its global partnerships.

While Carney did not meet directly with Indian Prime Minister Narendra Modi during the summit, he mentioned that Canadian officials, including the foreign minister, have been engaging with their Indian counterparts. “We are building our strength at home, first and foremost, and these partnerships abroad cannot happen overnight, but we are moving very fast,” he added.

The backdrop of these discussions stems from strained relations with the United States, particularly after Trump announced last week that he was terminating all trade negotiations with Canada, citing “egregious behaviour.” This decision followed an apology from Carney regarding an anti-tariff advertisement by Ontario that had provoked a strong response from the US administration.

In a further sign of Canada’s commitment to strengthening ties with India, Minister of Foreign Affairs Anita Anand recently visited the country for discussions with Indian Minister of External Affairs S. Jaishankar. During this visit, the two countries unveiled an ambitious roadmap aimed at enhancing cooperation in trade, critical minerals, and energy. This initiative is seen as essential for mending ties that had frayed significantly following the 2023 killing of a Sikh separatist.

As Canada navigates its trade landscape, Carney’s remarks reflect a strategic pivot towards the Asia-Pacific region, emphasizing the need for diversification in international partnerships. The ongoing dialogues with India and other nations may play a vital role in shaping Canada’s economic future in the face of evolving global trade dynamics.