Canada's new PM Carney signals major shift in India-Canada ties
What's the story
Newly-elected Liberal Party leader and incoming Prime Minister of Canada, Mark Carney, has vowed to boost trade ties with India. The promise comes amid Canada's challenges with US President Donald Trump's trade war and annexation threat. Carney won 85.9% of the votes in the recent party election, succeeding Justin Trudeau, who announced his resignation earlier this year but will continue until his successor is sworn in.
Trade diversification
Carney's vision for diversified trade relationships
After US tariffs on Canada, Carney stressed that Canada should diversify its trade ties with like-minded countries. He specifically pointed out India as a possible partner in this effort. "What Canada will be looking to do is to diversify our trading relationships with like-minded countries, and there are opportunities to rebuild the relationship with India," he said at a recent media interaction in Calgary, Alberta.
Economic insight
Carney's experience with India's economy
Carney's commitment to strengthening trade ties with India is supported by his keen understanding of the Indian economy. He was chair of Brookfield Asset Management's board until January this year, a firm that manages around $30 billion worth of assets across various sectors in India. Ritesh Malik, chair of the Canada-India Foundation (CIF), said he was confident Carney would prioritize foreign policy with trade and commerce at its core due to his economic expertise and experience.
Potential impact
Carney's leadership could reshape Canada-India relations
Malik said that given Carney's "global perspective and recognition of strategic geopolitical importance" of India, "it's plausible that his leadership could introduce a fresh approach to Canada-India relations, potentially fostering stronger economic and strategic ties between the two nations." The foundation's chair was optimistic about the future of Canada-India relations under Carney's leadership.
Diplomatic strains
Tensions mark Canada-India relations
India-Canada ties have been strained since September 18, 2023. On that date, Trudeau alleged in the House of Commons that there were "credible allegations" of a potential link between Indian agents and the killing of pro-Khalistan figure Hardeep Singh Nijjar in Surrey, British Columbia, three months earlier. Amid the tensions, Canada had earlier paused negotiations on an Early Progress Trade Agreement (EPTA) with India.