Before meeting with Indian Prime Minister Narendra Modi last weekend, Prime Minister Mark Carney said rebuilding ties with India will help diversify supply chains away from China in the field of renewable energy.
“India is one of the leading developers of clean technology, particularly in solar and wind,” Carney told reporters in South Africa on Nov. 23 as he was attending the G20 Summit in Johannesburg.
Carney added that if Canada is going to diversify away from China, which he said is the “dominant player” in solar and wind, India and South Korea are “really the two main opportunities, so that cooperation is quite valuable.”
Carney’s comments on India and China were part of a response to a reporter’s question asking whether Canada is moving too fast in rebuilding ties with India given concerns from the Canadian Security Intelligence Service (CSIS).
Meanwhile Carney told reporters Ottawa has to “remain vigilant” regarding “any forms of foreign interference.”
Ottawa is currently rebuilding damaged ties with India amid a push to diversify trade away from the United States.
Relations between Ottawa and New Delhi had collapsed in 2023 after Prime Minister Justin Trudeau accused India of having a hand in the assassination of pro-Khalistan activist Hardeep Singh Nijjar in B.C. India has denied the allegation.
Ottawa has emphasized that a law enforcement dialogue is continuing with India on such issues, as the two countries have normalized relations by reappointing high commissioners and also taken further steps to boost ties.
No formal trade talks between Canada and India had been announced following the two visits.
The two countries are now moving to that stage, according to Prime Minister’s Office (PMO). Carney met with Modi on Nov. 23 and the two have agreed to launch negotiations to reach a Comprehensive Economic Partnership Agreement (CEPA) which will cover goods, services, agriculture and agri-food, investment, digital trade, mobility, and sustainable development.
The two leaders said the deal could help double bilateral trade to $70 billion by 2030.
The Trudeau government had terminated trade talks with India in summer 2023 before making the accusation in the Nijjar case.
Carney said Canada’s commercial relationship has remained “quite strong” with India, notably regarding investments in the country, and the CEPA aims to “put that on a sound footing” by giving protections to Canadian and Indian businesses.
The prime minister said he considers India a reliable trading partner and that frictions are part of the course even with other partners deemed reliable such as the European Union.
