Prime Minister Mark Carney is on a trade and defence mission in the Indo-Pacific region, aiming to diversify Canada’s economic partnerships amid ongoing tensions with the United States over trade.
The trip includes stops in India and Australia, where Carney has been promoting new deals and strengthening longstanding alliances. The mission comes as Canada faces challenges from increased U.S. tariff threats and shifting trade dynamics.
“Canada has what the world wants – abundant energy, critical minerals, expertise in technology, and world-class talent,” said a government news release outlining Carney’s international agenda.
Seeking new partnerships beyond the United States
Canada’s trade relationship with the United States remains its largest, but it is showing signs of strain. Data from Global Affairs Canada reveals that in 2025, exports to the U.S. fell by nearly 6 per cent, while exports to other countries rose by over 17 per cent.
Mark Carney’s mission is part of a government effort to diversify trade ties, with India, Japan and Australia as key targets. At the same time, the mission supports maintaining strong access to U.S. markets under the renegotiated USMCA trade agreement expected this year.
TD Economics highlights that investors from the U.K. are acquiring Canadian technology companies in large numbers, viewing Canada as a gateway to North American markets. This points to Canada’s growing global appeal beyond its southern neighbour.
Carney’s visit to India highlights strategic deals
During his visit to India, Carney secured a $2.6-billion deal for Canadian uranium supply, underlining the importance of critical minerals in Canada’s export portfolio.
The Prime Minister was scheduled to hold a press conference after his meeting with Indian Prime Minister Narendra Modi, but it was cancelled due to the meeting running longer than expected.
Mackenzie Gray, a journalist covering the trip, tweeted that Carney was leaving India for Australia on a nearly 13-hour flight and had yet to take questions on the mission.
Mark Carney is now leaving India for Sydney, Australia on a nearly 13 hour flight.
Carney was supposed to have a press conference after his meeting but it was cancelled because his meeting with Modi went long.
He has yet to take questions on this trip #cdnpoli pic.twitter.com/8Oo82cfVY0
— Mackenzie Gray (@Gray_Mackenzie) March 2, 2026
Building on longstanding ties with Australia
Carney’s visit to Australia aims to strengthen both trade and defence relationships. Defence Minister David McGuinty, who is accompanying Carney, called the relationship “very important” and emphasized its foundation on years of cooperation.
Canada and Australia share intelligence ties and common interests in regional security, which Carney’s mission seeks to expand alongside economic partnerships.
However, the trip is occurring amid global geopolitical uncertainty, including ongoing conflicts in the Middle East, which add complexity to international trade discussions.
Canadian implications amid U.S. trade tensions
The backdrop to Carney’s travels is a strained Canada-U.S. trade relationship. The U.S. Trade Representative recently hinted at imposing higher tariffs on Canadian goods, contingent on reciprocal market openings.
Carney’s mission aims to counterbalance this pressure by deepening ties with Indo-Pacific partners and highlighting Canada’s strategic resources and talent pool.
Economists note that while diversification presents opportunities, sectors like auto manufacturing have suffered losses, with production down over 5 per cent in 2025, signaling ongoing challenges for parts of the Canadian economy.
A spokesperson for the minister of international trade said the government is committed to expanding Canada’s global economic footprint and protecting access to vital markets.
