Crime Today News
By Annunthra Rangan
Mark Carney has replaced Justin Trudeau as Canada’s prime minister after securing an overwhelming 85.9 percent of the votes in the Liberal Party’s leadership contest. His tenure, however, will be brief, lasting less than eight months before the general elections scheduled for October. Nonetheless, his leadership could signal a shift in Canada’s diplomatic approach, particularly in its strained relationship with India.
Carney, a seasoned economist with extensive experience in global financial markets, steps into the role at a critical juncture as Canada navigates strained relations with the United States and economic uncertainties. He previously served as the Governor of the Bank of Canada during the 2008 global financial crisis and later led the Bank of England through Brexit. Despite never having held elected office, Carney secured a decisive victory in the Liberal Party’s leadership race, winning 85.9 percent of the votes cast by over 1,50,000 party members. His only challenger was former Finance Minister Chrystia Freeland, a longtime colleague and ally.
Prime Minister Carney will immediately face pressing challenges, particularly in managing Canada’s economic and trade disputes with the United States. President Donald Trump’s tariff measures and assertive trade stance have heightened concerns about their potential impact on Canada’s economy and sovereignty.
Speaking after his victory, Carney affirmed his commitment to defending Canada’s economic interests. “Americans should be under no illusions,” he remarked. “In trade, as in hockey, Canada will win.” He also expressed firm support for Canada’s retaliatory tariffs in response to US trade policies, stating: “My government will maintain these tariffs until the United States treats us with the respect we deserve.”
Although Carney does not currently hold a seat in Parliament, he is widely expected to call for federal elections soon after taking office, setting the stage for a highly anticipated contest against Conservative Party leader Pierre Poilievre in October’s general election.
Carney’s appointment comes at a crucial moment for Canada, a key NATO ally and G7 nation facing significant domestic and international challenges. His predecessor, Justin Trudeau, acknowledged the gravity of the current political landscape in his address at the Liberal Party convention in Ottawa. “This is a defining moment for our nation,” Trudeau stated. “Democracy, freedom—even Canada itself—cannot be taken for granted.”
Beyond trade and diplomacy, Carney must also address broader policy issues shaping Canada’s future. Resource management remains a key challenge, as the country holds vast reserves of oil, gas, potash, rare minerals, and uranium—resources vital for global energy and technology sectors. A strong advocate for green investment in recent years, Carney will need to balance environmental commitments with economic growth.
Immigration policy is another area demanding attention. While Canada has historically maintained an open approach to both economic migration and refugee resettlement, the rapid increase in temporary migration post-pandemic has sparked debates about labour market needs and long-term integration strategies.
Carney has also indicated his intent to rebuild diplomatic ties with New Delhi. During a media interaction in Calgary, Alberta, he expressed a desire to enhance trade relations with India. “There are opportunities to strengthen our relationship with India,” Carney stated. “A shared sense of values should underpin our commercial engagement, and if I assume office, I look forward to working towards that goal.”
If diplomatic relations improve, Prime Minister Narendra Modi’s administration may consider a high-level dialogue with Carney’s government. Discussions are expected to include trade partnerships and Canada’s revised immigration policies, which have recently drawn criticism.
Carney’s background suggests he is well-acquainted with Canada’s economic engagement with India. As a former board member of Brookfield Asset Management—a firm with significant investments in India’s real estate, renewable energy, and infrastructure sectors—he brings valuable insights into bilateral trade dynamics. He stepped down from this role in January.
Relations between Canada and India reached a historic low in 2023 following Trudeau’s allegations that Indian operatives were involved in the assassination of Hardeep Singh Nijjar, a designated Khalistani extremist, in June that year. New Delhi categorically denied these claims, calling them “unsubstantiated,” which led to reciprocal diplomatic expulsions. The fallout also resulted in Canada pausing negotiations on the Early Progress Trade Agreement, which had been nearing completion.
However, with Trudeau stepping down and Carney assuming office, there is renewed potential for improved relations. A recent development hinting at a thaw is the visit of Daniel Rogers, Director of the Canadian Security Intelligence Service, to New Delhi. Rogers attended a closed-door meeting of intelligence chiefs hosted by India’s National Security Council Secretariat, alongside officials from the United States and the United Kingdom—signalling a potential shift towards diplomatic re-engagement.
Even before the 2023 diplomatic crisis, India had repeatedly voiced concerns about Sikh extremist activities in Canada, alleging that some groups were attempting to reignite separatist sentiments in Punjab. With approximately 8,00,000 Sikhs—two percent of Canada’s population—the Sikh diaspora plays a significant role in shaping political dynamics.
Nijjar, a vocal Khalistan supporter, had long been a source of tension between the two governments. However, recent informal exchanges between former diplomats and policy experts from both sides suggest a growing willingness to move past contentious issues and prioritize trade, investment, and climate cooperation.
Shifting global dynamics, particularly tensions between Canada and the United States under President Trump, could accelerate a diplomatic reset with India. Regardless of whether Carney or Poilievre leads Canada by mid-2025, Ottawa’s foreign policy reset will likely focus on diversifying economic and strategic partnerships in the Indo-Pacific and Europe—where India is an obvious ally given its complementarities in resources, technology, education, and investment.
Ajay Bisaria, India’s former High Commissioner to Canada, sees Carney’s leadership as a pivotal opportunity to reset bilateral ties ahead of Canada’s upcoming elections. “This transition presents a natural inflection point,” Bisaria remarked. He outlined potential steps for strengthening ties, including reinstating high commissioners, inviting India to Canada’s G7 Summit in June, and resuming trade negotiations. “Given Canada’s growing geopolitical challenges with both the US and China, deepening engagement with India could become a more attractive option,” he observed.
However, Bisaria cautioned that Ottawa’s immediate priorities may focus on economic concerns stemming from Trump’s tariff policies and evolving trade disputes. As a result, while a diplomatic reset with India appears likely, its pace and depth will depend on how Canada balances domestic and international priorities in the months ahead.
As Carney assumes office, his ability to navigate these geopolitical challenges—and whether he can bring a meaningful reset in Canada’s relations with India—will be closely watched.
—The writer is a Senior Research Officer at Chennai Centre for China Studies. Her research interests constitute China-WANA (West Asia and North Africa) relations and human rights
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