International

Canada’s PM Hails Progress With India Amid US Trade Tensions

Mark Carney, the Prime Minister of Canada, has said his country is making “progress” in its relationship with India and described the Asia-Pacific region as the best place to forge new partnerships. His comments come as Ottawa faces heightened trade tensions with the Donald Trump administration in the United States, which recently announced an end to trade talks with Canada.

Remarks by Carney

Carney made the remarks during a broader economic and diplomatic outreach in South Korea, where he emphasised that Canada is seeking to reduce its dependence on the U.S. by diversifying into other growth markets. He said the Asia-Pacific region accounts for about 60 per cent of global economic output and that India is a key part of Ottawa’s strategic pivot.

Background and Context

The timing of these remarks is significant: the U.S. last week terminated trade negotiations with Canada citing Canada’s “egregious behaviour”. Canada’s move to strengthen ties with India reflects a response to American protectionism and a desire to secure alternative markets and partners. India and Canada have maintained trade links and people-to-people ties, but diplomacy has been complicated in recent years by issues including the Indian diaspora in Canada and mutual concerns over security and interference.

Implications for Bilateral Relations

Carney’s statement signals Canada’s intent to invest more diplomatically and economically in India and the broader Indo-Pacific region. For India, the outreach presents an opportunity to deepen cooperation in sectors like trade, education and critical minerals. At the same time, it underscores how global trade pressures are reshaping traditional alliances: Canada is actively looking beyond the U.S., and India remains a major strategic pivot point for partners seeking to diversify.

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