By Paul Vieira
OTTAWA--Canada on Friday said it was launching consultations on possible trade and economic pacts with India and three other jurisdictions as Prime Minister Mark Carney attempts to reduce the country's economic reliance on the U.S.
Consultations on an India free-trade deal mark the latest step by Carney's government to normalize ties with India, following a diplomatic row focused on allegations in 2023 about New Delhi's role in the death of a Sikh activist in suburban Vancouver, British Columbia. Canada also announced consultations regarding possible trade deals with Thailand, the United Arab Emirates, and the South-American trading bloc known as Mercosur.
At the Group of 20 leaders summit in South Africa last month, Carney and India Prime Minister Narendra Modi agreed to formally launch talks on a new economic and trade pact between the two countries. Those talks date back to 2010, but in 2023 Canadian officials broke off negotiations after former Prime Minister Justin Trudeau said authorities were investigating allegations of the Indian government's involvement in the death of Hardeep Singh Nijjar, president of a Sikh temple.
Carney has opted for a new path in relations with India, given he's promised to help expand Canada's exports to non-U.S. markets as the country tries to reduce its trade dependence with a protectionist White House.
Canada and the Trump administration were in talks about relief for hefty tariffs, of up to 50%, on Canadian-made steel, aluminum, motor vehicles and forest products. President Trump terminated talks in November, due to advertising from the province of Ontario that Trump said misrepresented comments by former President Ronald Reagan regarding tariffs.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
12-12-25 1514ET
