US President Donald Trump’s threats have pushed Canada towards a significant shift in its foreign policy. Canada is now actively working to embrace India as a primary strategic and economic partner. This shift comes as diplomatic tensions from Prime Minister Justin Trudeau’s tenure under Mark Carney are easing.
Similarly, Canada is also seeking alternatives to counter the US.
Prime Minister Carney Prepares for India Visit
According to reports, Prime Minister Carney is planning a visit to India soon. This move aims to rapidly expand bilateral trade after more than two years of strained relations. According to Indian High Commissioner Dinesh Patnaik, the visit will take place in the first week of March, after India’s central budget. It will include the signing of agreements on uranium, energy, minerals, and artificial intelligence (AI).
Is Canada’s rapprochement beneficial for India?
For India, which is grappling with high US tariffs, this stance from Canada comes as a bonus. Similarly, the free trade agreement (FTA) signed with the European Union (EU) will also prove beneficial. European Council President Antonio Costa and European Commission President Ursula von der Leyen are in India as chief guests for the Republic Day celebrations, and they are expected to sign the FTA.
Jaishankar’s Meaningful Conversation with Canadian Foreign Minister
A high-level meeting followed a fruitful conversation between Canadian Foreign Minister Anita Anand and her Indian counterpart S. Jaishankar on the occasion of India’s 77th Republic Day. In this meeting, the two leaders discussed deepening cooperation in AI, economic partnership, and continuing high-level exchanges. According to reports, Canada needs immediate action on this matter amid Trump’s threats.
What threats has Trump made to Canada?
The backdrop to this shift in Canada lies in the rapidly deteriorating trade environment in North America. President Trump has threatened to impose a 100 percent tariff on all goods exported from Canada to the US if Canada becomes a port of entry for Chinese exports. The Trump administration is concerned that Chinese goods could be routed through Canada to the US, posing a threat to its market.
What is the reason for Canada turning to India?
Both India and Canada are facing high tariffs from the Trump administration. India is facing a 50 percent tariff, 25 percent of which is due to its purchase of Russian oil. Similarly, Canada is facing a 35 percent tariff after years of close relations with its wealthy neighbour. This parallel pressure has accelerated efforts towards a Comprehensive Economic Partnership Agreement (CEPA) between India and Canada.
There is also a fear in Canada of becoming the 51st state of the US.
This shift is not only related to financial reasons. In some ways, it is also linked to national survival. Trump has publicly referred to Canada as a potential ’51st state’ on several occasions. This has also fueled fears of a US takeover in Canada.
Why has Canada turned to India now?
Canada’s changing stance towards India is also due to India’s growing economic stature in South Asia. India is also set to sign an FTA with the EU soon. According to reports, one of Canada’s key sectors is the trade of gas and minerals. Analysts say that Canada currently considers India a more stable democratic partner for long-term relations than China. Therefore, it is strengthening its ties with India.
India, as an Indo-Pacific power, will provide balance for Canada.
According to experts, Canada is increasing its defence spending to strengthen its threatened sovereignty on the security front. Similarly, strengthening defence relations with India, a major Indo-Pacific power, also provides it with a balance against US dominance. Meanwhile, Canadian Energy Minister Tim Hodgson is also scheduled to visit Goa soon, where he will hold high-level meetings with government officials at a conference.
