Canada PM Carney visit to India Marks a push for trade diversification amid US Tariffs

By R Anil Kumar

• Trade diversification push will bring Carney to India in coming Weeks

• Renewed Diplomatic ties a sign of Trust says India’s High Commissioner to Canada

Bengaluru, January 13, 2026. Canadian Prime Minister Mark Carney plans to visit India in the coming weeks, marking a significant step towards revitalising bilateral trade amid escalating US tariffs under President Donald Trump.

This move follows over two years of strained diplomatic ties, primarily triggered by Canada’s allegations in 2023 regarding the killing of Khalistani separatist Hardeep Singh Nijjar, which India has firmly denied as preposterous.

Indian High Commissioner to Canada, Dinesh Patnaik, confirmed the visit during an appearance on CBC’s “Power & Politics,” highlighting it as a push for trade diversification now that trust is returning to the relationship.

Carney’s administration aims to double Canada’s non-US exports over the next decade, a strategy necessitated by the US imposing 35 per cent tariffs on Canadian goods and 50 per cent on Indian exports—25 per cent of the latter linked to India’s purchases of Russian oil.

Patnaik noted that diplomats are working to catch up on delayed initiatives, with the visit expected shortly after India’s Union Budget on 1 February 2026. This renewed engagement stems from a November 2025 meeting between Carney and Prime Minister Narendra Modi at the G20 Summit in South Africa, where Modi extended the invitation.

The diplomatic chill began in 2023 when former Canadian Prime Minister Justin Trudeau accused Indian agents of involvement in Nijjar’s assassination near a Vancouver gurdwara, prompting India to expel Canadian diplomats and suspend visa services.

Relations began thawing after Carney assumed office, with high commissioners returning in August 2025 and agreements to boost diplomatic staffing for consular needs. Carney has welcomed progress in law enforcement dialogues, while Patnaik praised the new Canadian leadership for altering Ottawa’s approach.

A key outcome of the G20 sidelines discussion was the agreement to launch negotiations for a high-ambition Comprehensive Economic Partnership Agreement (CEPA), targeting bilateral trade expansion to USD 50 billion by 2030. Current trade stands robust, with volumes exceeding USD 30 billion in 2024, positioning India as Canada’s seventh-largest goods and services partner. Canadian

Foreign Minister Anita Anand has emphasised expeditious progress on the trade deal, aligning with Carney’s foreign policy pivot in response to global protectionism.

This visit underscores Canada’s broader Indo-Pacific strategy to unlock opportunities for its businesses and workers, especially as over 75 per cent of its exports currently rely on the US market, much of it under review via the USMCA in 2026.

India, facing similar tariff pressures, sees mutual benefits in deepening economic ties, including potential cooperation in emerging sectors like defence, space, and AI—highlighted by Carney’s support for India’s AI Impact Summit in February 2026. Patnaik’s optimism reflects a pragmatic shift, with both nations prioritising commerce over past frictions.

(Based on CBC News)