What does Mark Carney as Canada Prime Minister mean for India in terms of trade and bilateral relations?

The election of Mark Carney as Canada’s new Prime Minister marks a potential turning point in India-Canada relations. Carney, a former Governor of the Bank of England and Bank of Canada, has expressed his desire to mend ties with India, signaling a departure from the strained diplomatic relationship under Justin Trudeau’s leadership. With his emphasis on diversifying trade and engaging with like-minded nations, India stands as a key strategic partner in Carney’s vision for Canada’s global economic and political engagement.

Trade and economic cooperation

Mike Carney has made it clear that he intends to expand trade partnerships, particularly with countries that align with Canada’s economic goals. During a media interaction in Calgary, he stated, “What Canada will be looking to do is to diversify our trading relationships with like-minded countries, and there are opportunities to rebuild the relationship with India.”

This statement reflects a shift in Canada’s foreign trade policy, which had been overshadowed by diplomatic tensions under Trudeau. The Comprehensive Economic Partnership Agreement (CEPA) negotiations, which were stalled amid political conflicts, could see renewed momentum under Carney’s leadership. Sectors such as technology, energy, and education could benefit from enhanced trade relations between the two nations.

Immigration policies and workforce dynamics

India has been a major contributor to Canada’s skilled workforce and student population. Under Carney, immigration policies are expected to remain favorable, particularly for skilled professionals and students. Given his economic background, Carney is likely to support policies that attract top talent to bolster Canada’s workforce and innovation sectors.

With India being a primary source of immigrants and international students, a more stable diplomatic relationship could lead to an increase in student and work visas, as well as smoother processing of permanent residency applications. A reset in relations could also see the return of cooperation in recognizing Indian credentials and qualifications for various professional fields in Canada.

Diplomatic and security relations

One of the major obstacles to India-Canada relations was Trudeau’s handling of the Khalistan issue, which led to a diplomatic standoff between the two nations. Carney’s leadership presents an opportunity to depoliticise India-Canada ties and focus on mutual interests such as counterterrorism, regional security, and global governance.

With Trudeau’s exit, there is hope that the influence of extremist Sikh elements in India-Canada relations will decline. According to reports, India’s Ministry of External Affairs is already considering restoring the Indian High Commissioner to Canada, which would be a significant step in normalizing diplomatic engagement.