Prime Minister Mark Carney is poised to embark on a significant diplomatic mission to India in early March, where he is expected to finalise agreements on uranium, energy, minerals, and artificial intelligence. This visit comes as Carney seeks to diversify Canada’s international partnerships beyond its longstanding reliance on the United States, particularly in the wake of recent geopolitical challenges.
Diversifying Alliances
In a bid to reshape Canada’s global standing, Carney delivered a powerful message during his recent appearance at the World Economic Forum in Davos, where he received widespread acclaim for his assertion that the existing world order is undergoing a transformation. He urged middle powers such as Canada to forge collaborative alliances to foster a more equitable and resilient global community. His remarks followed a significant agreement with China aimed at reducing tariffs on electric vehicles and canola, potentially unlocking up to $7 billion in export opportunities, as he aims to double Canada’s non-U.S. exports over the next decade.
Resetting Relations with India
Carney’s forthcoming visit is also a crucial step in mending relations with India, which had been strained following allegations made by his predecessor, Justin Trudeau, accusing the Indian government of involvement in the assassination of Sikh separatist leader Hardeep Singh Nijjar in 2023—a claim that India has vehemently denied. High Commissioner Dinesh Patnaik confirmed during an interview that discussions for a Comprehensive Economic Partnership Agreement with India are set to recommence, with formal negotiations expected to begin in March.
Strategic Agreements on the Horizon
During his trip, Carney is anticipated to sign several agreements with Indian officials covering a range of sectors, including nuclear energy, oil and gas, environmental initiatives, artificial intelligence, and cultural exchanges. Among the agreements in the offing is a substantial 10-year, $2.8 billion uranium supply deal, contingent on India’s adherence to International Energy Agency safeguards. Energy Minister Tim Hodgson, who is currently in India, confirmed that Canada is willing to engage in uranium trade under the existing Canada-India nuclear co-operation framework, highlighting India’s ambitions to expand its civilian nuclear energy use.
Urgency in Trade Discussions
The urgency of these discussions has been underscored by a two-year hiatus in trade negotiations, with both nations keen to establish a swift pathway forward. Patnaik emphasised the need for countries impacted by U.S. tariffs to pursue independent trade agreements. He remarked on the changing landscape of international relations, echoing Carney’s sentiments at Davos, where he called for partnerships that can withstand the unpredictability of the current global order.
This proactive approach comes amid rising tensions in trade relations, particularly after U.S. President Donald Trump threatened to impose 100 per cent tariffs on Canada should it engage in trade agreements with China. Carney reiterated Canada’s commitment to the United States-Mexico-Canada Agreement, asserting that Canada would not pursue free trade agreements with non-market economies.
Why it Matters
Carney’s anticipated visit to India represents a critical juncture for Canada as it seeks to redefine its global trade relationships and reduce dependence on the United States. By fostering closer ties with India, a rapidly growing economy and key player in the global market, Canada stands to enhance its economic resilience and assert its position as a significant partner in the evolving geopolitical landscape. The agreements reached during this visit could pave the way for a more diversified and robust trade framework, ultimately benefiting both nations in an increasingly interconnected world.
