Carney Heads to Asia to Deepen Ties with India, Australia and Japan Amid Trade Diversification Push

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Prime Minister Mark Carney is embarking on a week long tour of Asia aimed at strengthening Canadas economic and security partnerships with India

Prime Minister Mark Carney is embarking on a week-long tour of Asia aimed at strengthening Canada’s economic and security partnerships with India, Australia and Japan, as Ottawa looks to reduce its reliance on the United States and expand trade across the Indo-Pacific.

In a statement issued Feb. 23, the Prime Minister’s Office said the visit reflects Canada’s broader strategy to diversify its trade relationships and attract new investment. The government has set an ambitious goal of doubling non-U.S. exports over the next decade.

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Carney’s first stop will be Mumbai, followed by meetings in New Delhi with Indian Prime Minister Narendra Modi on Feb. 26. The leaders are expected to discuss expanding cooperation in trade, energy, artificial intelligence talent, culture and defence. The visit comes amid renewed efforts to repair and strengthen ties between Ottawa and New Delhi after a period of diplomatic tension.

Following India, Carney will travel to Sydney and Canberra for talks with Australian Prime Minister Anthony Albanese. Discussions are set to focus on defence collaboration, critical minerals and trade. Carney is also scheduled to address both Houses of Australia’s Parliament the first Canadian prime minister to do so in nearly 20 years.

The final leg of the trip will take the prime minister to Tokyo, where he will meet Japanese Prime Minister Sanae Takaichi. Their talks will centre on energy security, critical mineral supply chains, food security and regional defence cooperation. The visit follows Japan’s recent general election, which delivered a strong mandate to Takaichi’s Liberal Democratic Party, a party that supports increased defence spending and constitutional changes to strengthen Japan’s security posture in response to China’s growing influence.

The Asia tour comes shortly after Carney concluded a visit to Beijing in January, where Canada and China reached a trade understanding. Under the deal, Canada agreed to lower tariffs on up to 49,000 Chinese electric vehicles annually from 100 percent to the most-favoured-nation rate of 6.1 percent. In exchange, China is expected to reduce tariffs on Canadian agricultural and seafood exports, including canola, lobsters, crabs and peas.

Carney’s visit to India signals a significant step in rebuilding relations that deteriorated under former Prime Minister Justin Trudeau.

Tensions escalated in September 2023 after Trudeau publicly alleged that Indian agents were linked to the killing of Hardeep Singh Nijjar, a pro-Khalistan activist, in British Columbia. India denied the accusation and criticized Canada for what it described as tolerance of Sikh separatist activity. The diplomatic dispute led to mutual expulsions of diplomats in October 2024.

Canadian authorities, including the RCMP, have alleged involvement of Indian government agents in serious criminal activities within Canada, including homicide and extortion claims New Delhi has rejected.

Relations began to thaw last year after Carney invited Modi to attend the G7 Summit in Kananaskis, Alberta. Both countries appointed new high commissioners in August 2025, and a visit to India by Foreign Affairs Minister Anita Anand in October helped lay the groundwork for a renewed roadmap emphasizing trade, climate action and energy cooperation.

In November 2025, Carney and Modi agreed at the G20 Leaders’ Summit to relaunch negotiations for a Comprehensive Economic Partnership Agreement (CEPA), which had been suspended during the diplomatic standoff. Canada’s International Trade Minister Maninder Sidhu also visited India that month for ministerial-level talks.

Asked whether Canada would raise concerns about transnational repression and Nijjar’s killing during the upcoming meetings, Anand told reporters on Feb. 23 that the issue remains a priority.

She said  that “The security situation at home and abroad in terms of Canadians is of extreme concern and priority,”.

Carney is scheduled to return to Canada on March 7, concluding a tour that underscores Ottawa’s evolving Indo-Pacific strategy one balancing economic opportunity with complex geopolitical realities.

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