Canadian Prime Minister Mark Carney will visit India this week to push for expanded trade and repair strained diplomatic ties, launching an Asia-Pacific tour that also includes Australia and Japan as Ottawa seeks to reduce economic dependence on the United States.
The India trip will be closely watched as Carney and Prime Minister Narendra Modi attempt to restore relations that effectively broke down in 2024. In a statement announcing the visit, Carney said Canada is focusing on strengthening partnerships abroad to enhance certainty, security and prosperity at home amid a shifting global landscape.
Carney has argued that the US-led global order is weakening and that Canada cannot assume a return to previous arrangements after President Donald Trump leaves office. Trump’s tariffs on Canadian autos, aluminium, lumber and steel have weighed on the Canadian economy, although the impact has been partially softened by continued adherence to the existing North American free trade framework.
Negotiations to revise that agreement are scheduled to begin early this year. Trump has repeatedly stated that the United States does not need Canadian products, a position that, if enacted, would carry serious consequences for Canada’s export-driven economy. He has also publicly floated the idea of annexing Canada, posting a map on social media depicting Canada under the American flag.
Carney has responded by emphasising the need for Canada to significantly expand non-US trade. India is a central focus of that strategy. Ottawa aims to more than double bilateral trade to CAN$70 billion (US$51 billion) by 2030. The two countries agreed last year to initiate negotiations on a new free trade agreement.
The meeting carries added significance following tensions sparked by Canadian allegations that Indian agents were involved in the 2023 killing of a Sikh leader in Canada. New Delhi denied the accusations, and the dispute disrupted consular and trade services between the two countries. Bilateral trade stood at approximately CAN$28 billion in goods and services in 2023.
After India, Carney will travel to Sydney and Canberra for talks with Australian Prime Minister Anthony Albanese. Discussions are expected to centre on economic security, critical minerals and defence cooperation.
The tour will conclude in Japan, where Carney will meet Prime Minister Sanae Takaichi before returning to Canada on March 7.
The multi-country visit underscores Canada’s effort to strengthen ties across the Indo-Pacific as it recalibrates its foreign policy and trade strategy in response to geopolitical and economic uncertainty.
