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Canada's PM Carney to Visit India, Seeking Trade Diversification from US

Canadian Prime Minister Mark Carney is set to visit India in the coming weeks, aiming to diversify Canada's trade partnerships amid high tariffs imposed by the United States. The visit signals a renewal of engagement after over two years of strained relations, which began in 2023 over Khalistani separatist issues and allegations involving a terrorist's killing. Both nations have agreed to begin negotiations on a Comprehensive Economic Partnership Agreement (CEPA), with a target to raise bilateral trade to USD 50 billion by 2030. The Indian envoy noted that trust is returning to the relationship under Canada's new leadership.

Key Points: Canada PM Carney India Visit to Boost Trade Amid US Tariffs

  • Visit aims to diversify Canada's trade
  • Follows years of strained diplomatic ties
  • Both nations face high US tariffs
  • Target to raise trade to $50 billion by 2030
  • New CEPA trade agreement negotiations to begin
3 min read

Canada's PM Carney to visit India as a push for trade diversification amid US tariffs

Canadian PM Mark Carney plans India visit to expand bilateral trade and diversify from US tariffs, signaling a thaw in diplomatic relations.

"We're going to double our non-US exports over the next decade - Mark Carney"

Ottawa, January 13

With Canadian Prime Minister Mark Carney stating that Ottawa, in order to diversify its global trade landscape, will be doubling their non-US exports by the next decade, Indian High Commissioner to Canada Dinesh Patnaik said that the Canadian PM is set to visit India in the coming weeks for the expansion of bilateral trade with New Delhi, after over two years of strained diplomatic relations.

Speaking to CBC's "Power & Politics", the Indian Envoy on Monday stated that Carney's visit to India is aimed at diversifying Canada's trading partners amid high tariffs imposed by the US on its largest trade partner.

Both India and Canada are facing high tariffs imposed by US President Donald Trump on their exports: 50 per cent tariffs on India, 25 per cent of which is due to New Delhi's purchase of Russian Oil, and 35 per cent tariffs on Canada.

"In a shifting global trade landscape, Canada's new government is focused on what we can control. We're going to double our non-US exports over the next decade -- to secure new opportunities for Canadian businesses, and create tens of thousands of new careers for Canadian workers." Carney said in a post on X on Monday.

Patnaik, speaking to CBC said Carney's visit is expected after India tables its Union Budget on February 1, describing the renewed engagement as a sign that "trust is back in the system."

He added that diplomats are working to "catch up" on initiatives delayed due to a "slight gap" in relations.

The diplomatic chill between the two nations began in 2023 when India expressed concerns over Canada's perceived leniency towards Khalistani separatist elements and former Canadian Prime Minister Justin Trudeau allegations that Indian agents were involved in the killing of NIA-designated terrorist Hardeep Singh Nijjar outside a gurdwara the same year.

Patnaik emphasised that the Indian government has denied any involvement, saying, "We have always said it's preposterous, absurd. It's something we don't do," and that "there is no case against the Government of India."

The envoy further noted that Canada's approach is changing under the current leadership, stating, "There's a new prime minister who is changing the way Canada behaves," as quoted by CBC.

In November last year, Carney accepted Prime Minister Narendra Modi's invitation to visit India in early 2026 on the sidelines of the G20 Leaders' Summit in South Africa, according to a statement from the Office of the Prime Minister of Canada.

Following the return of high commissioners in August 2025, the two prime ministers agreed to increase diplomatic staffing to meet growing consular demand and strengthen people-to-people ties. They also agreed to support reciprocal knowledge transfer as part of ongoing engagement between the two countries.

Carney welcomed the progress being made in the law enforcement dialogue between India and Canada.

India and Canada have agreed to begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA) following a bilateral meeting between PM Modi and his Canadian counterpart, Mark Carney, on the sidelines of the summit. The planned CEPA talks aim to raise bilateral trade to USD 50 billion by 2030.

- ANI

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Reader Comments

P
Priya S
While I welcome the trade talks, I hope our government remains firm on national security. The previous Canadian government's stance on Khalistani extremism was deeply concerning. Trust is back, as the envoy says, but it must be based on mutual respect for sovereignty. Let's hope this visit reinforces that.
R
Rohit P
$50 billion target by 2030 is ambitious but achievable! Canada has resources, India has manufacturing and a huge market. This could be great for jobs in both countries. Also, good to see the US tariffs pushing other nations to look beyond them. Time for India to strengthen ties with other democracies.
S
Sarah B
As an Indian student in Canada, this is very welcome news. The diplomatic freeze made things difficult for us here. More cooperation means better support for the large Indian community. Hoping the CEPA includes easier mobility for skilled professionals and students.
V
Vikram M
The article mentions the US tariff on India due to Russian oil. This is the reality of geopolitics. We must diversify our energy sources and trade partners. Canada can be a stable partner. But let's not put all eggs in one basket again. Strengthen ties with EU, ASEAN too.
K
Karthik V
I appreciate the optimistic tone, but a note of caution. The "trust is back" line feels a bit premature. The core issue of Canada providing space to separatists hurt a lot of patriotic sentiment here. The new PM seems better, but actions matter more than words. The trade deal should not come at the cost of ignoring security concerns.

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