Trade diversification push will bring Carney to India in coming weeks, top envoy says

After more than two years of fractured diplomatic relations, Prime Minister Mark Carney will visit India in the coming weeks as both countries look to diversify trading partners in the face of U.S. President Donald Trump’s trade war.

India’s High Commissioner to Canada Dinesh Patnaik told CBC’s Power Politics host David Cochrane the trip will take place after India tables its budget on February 1. 

Patnaik said the renewed diplomatic ties are a sign that “trust is back in the system,” and diplomats are, “catching up” on work missed amid what he called a “slight gap” in relations. 

That gap began when former prime minister Justin Trudeau alleged that Indian agents were linked to an extrajudicial killing of Sikh activist Hardeep Singh Nijjar on Canadian soil in 2023.

The RCMP also accused agents of India’s government of involvement in homicides, extortion and threats in Canada. 

The allegations led to a deep freeze in Canada-India relations that has only started to thaw in recent months.

Indian Prime Minister Narendra Modi’s government has denied ordering extrajudicial killings in Canada.

“We have always said it’s preposterous, absurd. It’s something we don’t do,” said Patnaik.  

Four men, all Indian nationals who arrived in Canada several years ago, have been accused of carrying out the killing of Nijjar.

“There is no case against the Government of India,” said Patnaik, adding that the accusations were brought forward by a prime minister who is “no longer here.”

“There’s a new prime minister who is changing the way Canada behaves,” said Patnaik. 

U.S. tariffs prompt negotiations

Carney’s visit follows a commitment by both leaders to launch negotiations toward a new trade deal called a Comprehensive Economic Partnership Agreement (CEPA), announced when the two leaders met at the G20 Summit in South Africa last November. 

At the time Carney’s office said he had accepted Modi’s invitation to visit India “in early 2026.”

Canada and India both face steep U.S. tariffs — India facing tariffs of 50 per cent, in part for buying Russian oil. 

“Both countries need each other,” said Patnaik. “I think both prime ministers recognized that.”

Patnaik said he’s looking for Canada and India to “move the envelope forward,” on key sectors including: energy, fertilizers, on agri-food, innovation, RD, aerospace and defence. 

When asked if a trade deal might be signed by the end of the year, Patnaik said that progress on these files and being “near” signing would be achievement enough.

Ministers on trade missions

Carney’s visit will follow diplomatic missions to India by various Carney ministers, including Federal Energy Minister Tim Hodgson and Artificial Intelligence Minister Evan Solomon later this month, and by Foreign Affairs Minister Anita Anand and International Trade Minister Maninder Sidhu late last year.

All marking the latest indicators that that relations are thawing as Carney looks to reset the relationship under his own leadership, and in the face of Trump’s tariffs. 

Carney heads to China Tuesday for a similar milestone trade mission following years of fractured diplomatic relations with China. 

Article source: https://www.cbc.ca/news/politics/carney-india-as-both-countries-look-to-deepen-economic-ties-9.7042985?cmp=rss