Canadian Prime Minister Mark Carney is embarking on a strategic trip to India, Australia, and Japan, aiming to make the national economy less dependent on the influence of the United States. This initiative seeks to open new markets and secure supply chains amid growing uncertainty in relations with Washington. A key element of the mission is to resume free trade talks with Delhi and strengthen technological cooperation with Tokyo and Canberra.

Trade Diversification

Seeking new markets in India and Japan to weaken the dominance of the US in Canadian exports.

Negotiations in Delhi

Attempt to break the deadlock in free trade talks with India, a key partner in South Asia.

Russian Oil to China

Increased use of supertankers by Russia for raw material deliveries to China, affecting global logistics prices.

Prime Minister Mark Carney has launched a large-scale diplomatic offensive in the Indo-Pacific region. The main goal of visits to India, Australia, and Japan is to reduce historically high export dependence on the USA. Canada, where over two-thirds of foreign trade relies on relations with its southern neighbor, seeks stability in partnerships with Asia's fastest-growing economies. In India, Carney intends to finalize the framework of a free trade agreement, which is crucial for Canada's agricultural and resource sectors. Since the creation of the NAFTA free trade zone in 1994 (later transformed into USMCA), Canada's economy has become almost fully integrated with the US market, which in an era of protectionism creates political risk.Meanwhile, in relations with China, Ottawa maintains distance, mirroring Washington's skeptical line. US representatives declare a desire to stabilize relations with Beijing but openly admit a lack of trust in China's geostrategic intentions. Meanwhile, Russia, circumventing Western sanctions, is increasingly linking its energy sector to the Chinese market, using ever-larger tankers for oil transport. This phenomenon affects global freight costs, which Canada must factor into its calculations when attempting to enter Asian markets. „We are building new pillars for Canadian prosperity so that it does not depend on just one unpredictable partner.” — Mark Carney A threat to the new strategy, however, is tariff friction. The US has imposed tariffs on photovoltaic components from India, complicating Canada's cooperation with Delhi in the green energy sector. Carney must navigate between the desire to strengthen ties with India and loyalty to alliances within the G7. Additionally, Russian restrictions on oil shipments through the Transneft system following drone attacks are destabilizing fuel prices, indirectly increasing pressure on Canada's extraction sector. Canada: USA: 75, Chiny: 4, Wielka Brytania: 3, Japonia: 2, Indie: 1

Mentioned People

  • Mark Carney — Prime Minister of Canada planning a diplomatic trip to Asia.