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Canadian PM Mark Carney to Boost Trade Ties with India

Canadian Prime Minister Mark Carney is set to visit India in the near future after a prolonged period of strained diplomatic ties, driven by a need to expand trade partnerships in light of the trade disputes initiated by U.S. President Donald Trump.

India’s High Commissioner to Canada, Dinesh Patnaik, disclosed to CBC’s “Power & Politics” host David Cochrane that the visit is scheduled post-India’s budget presentation on February 1. Patnaik emphasized that the rekindled diplomatic relations signify a restoration of trust within the system, with diplomats striving to make up for lost time due to a previous setback in relations.

The rift originated when former Canadian Prime Minister Justin Trudeau accused Indian agents of involvement in the extrajudicial killing of Sikh activist Hardeep Singh Nijjar on Canadian soil in 2023. The Royal Canadian Mounted Police (RCMP) further implicated Indian government agents in various criminal activities within Canada, leading to a freeze in Canada-India relations, which has only recently begun to thaw.

Contrary to the allegations, the Indian government, under Prime Minister Narendra Modi, has vehemently denied any involvement in extrajudicial killings in Canada. Patnaik dismissed the accusations against the Government of India, highlighting that they were raised by a previous prime minister and emphasized the transformative approach under the current leadership.

The upcoming visit by Carney follows an agreement between the leaders of both nations to initiate negotiations for a new trade agreement termed the Comprehensive Economic Partnership Agreement (CEPA), announced during their meeting at the G20 Summit in South Africa. The visit is a response to the pressing need to address the punitive U.S. tariffs impacting both countries, with India facing tariffs of up to 50% due in part to its purchases of Russian oil.

Patnaik stressed the mutual necessity for Canada and India to strengthen ties, recognizing the interdependence between the two nations. He outlined key sectors for collaboration, including energy, fertilizers, agriculture, innovation, research and development, aerospace, and defense. While the possibility of signing a trade deal by year-end remains uncertain, progress in these areas would represent a significant accomplishment.

Moreover, preceding Carney’s visit, various Canadian ministers have embarked on diplomatic missions to India, underscoring the ongoing efforts to improve relations and navigate the challenges posed by Trump’s trade policies. This strategic engagement reflects Carney’s proactive stance in reshaping ties under his leadership and in response to the evolving global trade landscape. Carney is also scheduled to lead a similar trade mission to China, signaling a broader effort to revitalize diplomatic engagements with key economic partners.

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