Canadian Prime Minister Mark Carney is emphasizing the importance of Canada's relationship with India as a key strategy to reduce his country's trade dependence on the United States. With ongoing trade tensions and the U.S. adopting a more protectionist stance, Canada is actively seeking to diversify its export markets and strengthen ties with global economies like India and China.
Carney has set a goal for Canada to double its non-U.S. exports within the next decade, acknowledging that the close economic relationship Canada once had with the U.S. is changing. He highlighted that American tariffs are creating uncertainty and discouraging investment in key Canadian industries such as autos, steel, and lumber.
To achieve this diversification, Carney embarked on his first official visit to Asia in late October 2025, aiming to deepen trade and security ties. This trip included attending the Association of Southeast Asian Nations summit in Kuala Lumpur, visiting Singapore for meetings, and participating in the Asia-Pacific Economic Cooperation summit in South Korea. A potential meeting with Chinese President Xi Jinping was also considered as part of efforts to reset a strained relationship.
During the G7 summit earlier this year, Carney described his meeting with Indian officials as a "foundational" step toward rebuilding bilateral ties, emphasizing mutual respect, sovereignty, and trust. Plans are underway to reinstate high commissioners and resume dialogue on law enforcement and transnational issues. Carney has stated there are very deep ties between the people and businesses of Canada and India, and these ties are not being well-served at present.
While Canada still relies on the U.S. for approximately 75% of its exported goods, the government is actively pursuing trade deals and partnerships to expand its reach in Asia. In the previous month, Canada signed a trade deal with Indonesia, with the goal of establishing duty-free access for up to 95% of its goods exported there within the next year.
Analysts suggest that it is crucial for Carney to communicate to Asian leaders that Canada has its own agenda and is committed to rules-based trade and globalization. This strategy reflects a broader effort to redefine Canada's foreign policy and pursue new markets in a changing global economic landscape.
