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Tuesday, March 3, 2026

Canada Makes Progress with India Amid US Trade Tensions

Canada-India Relations Show Progress Amid US Trade Tensions

Canadian Prime Minister Mark Carney has highlighted significant progress in Canada-India relations while emphasizing his country’s strategic pivot to build global partnerships amid escalating trade tensions with the United States.

Key Developments

  • Canada making “progress” in relations with India
  • New partnerships forming across Asia-Pacific region
  • Trade tensions with US driving diversification strategy
  • Recent high-level ministerial visits between Canada and India

APEC Summit Remarks

The Canadian leader’s comments came during the Asia-Pacific Economic Cooperation summit in South Korea, where he outlined Canada’s accelerated efforts to reduce reliance on US markets.

“And to be building new partnerships with countries around the world. And there is no better place to do that than in the fastest-growing part of the world that represents 60 per cent of the global economy,” Carney said, referring to the Asia-Pacific region.

Expanding Asian Partnerships

Carney highlighted several key developments in Canada’s Asia strategy:

  • Free trade agreement with Indonesia
  • Ongoing negotiations with Philippines and Thailand
  • “Turning point” in relationship with China
  • Continued engagement with India

Regarding India specifically, Carney noted:

“Progress which we have been making with India…So I didn’t meet directly with Prime Minister (Narendra) Modi here, (but), the foreign minister, other ministers have been meeting with India.”

US Trade Tensions

The strategic shift comes as US President Donald Trump terminated all trade negotiations with Canada, accusing Ottawa of “egregious behaviour.” The situation escalated after an anti-tariff advertisement by Ontario prompted Carney to apologize to Trump.

Carney emphasized the urgency of the diversification strategy:

“That’s what we’re doing to build our strength at home, first and foremost. Build these partnerships abroad, reduce our reliance on the United States. It can’t happen overnight, but we’re moving very fast.”

Recent Canada-India Engagement

The relationship rebuilding efforts include last month’s visit by Canadian Foreign Minister Anita Anand to India, where she met with External Affairs Minister S Jaishankar. The two leaders unveiled an ambitious roadmap to enhance cooperation in:

  • Trade and commerce
  • Critical minerals sector
  • Energy partnerships

These developments represent significant steps in mending ties that were strained following the 2023 killing of a Sikh separatist.

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