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Canada: How Mark Carney's PM race victory could impact trade ties with India
Mark Carney, elected as Liberal Party leader, secured 85.9% of the votes and aims to build economic ties amid ongoing trade tensions with the US.
Mark Carney, a former central banker who is set to replace Justin Trudeau as Canadian Prime Minister, has vowed to “rebuild” the trading relationship with India.
Mark Carney will become Canada’s next PM after the governing Liberal Party elected him its leader Sunday as the country deals with US President Donald Trump’s trade war and annexation threat, and a federal election looms.
Mark Carney, 59, replaces Justin Trudeau, who announced his resignation in January but remains prime minister until his successor is sworn in in the coming days. Mark Carney won in a landslide, winning 85.9% of the vote.
Also Read | Economy, ties with India among key focus areas for Canada’s PM-elect Mark Carney
Responding to questions from the media in Calgary, Alberta, recently over the tariffs imposed upon Canada by the US, Carney said, “What Canada will be looking to do is to diversify our trading relationships with like-minded countries, and there are opportunities to rebuild the relationship with India.”
“There needs to be a shared sense of values around that commercial relationship, and if I am Prime Minister, I look forward to the opportunity to build that,” he added.
Carney has a strong understanding of India's economy, having served as the chair of Brookfield Asset Management’s board until January this year. A company spokesperson earlier told Hindustan Times that Brookfield has been highly optimistic about India, managing around $30 billion in assets across various sectors, including real estate, infrastructure, renewable energy, private equity, and special investments.
Carney’s statement was welcomed by Ritesh Malik, chair of the Canada-India Foundation or CIF. He said, “Carney as a seasoned economist and his experience with Brookfield knows the economic importance of this relationship. I feel his top priority will be foreign policy with trade and commerce in mind, and everything from current scenario would be only upwards for Canada-India.”
Malik felt given Carney’s “global perspective and recognition of strategic geopolitical importance” India, “it’s plausible that his leadership could introduce a fresh approach to Canada-India relations, potentially fostering stronger economic and strategic ties between the two nations.”
India-Canada diplomatic row
Ties between India and Canada saw tensions following Justin Trudeau’s statement in the House of Commons on September 18, 2023, there were “credible allegations” of a potential link between Indian agents and the killing of pro-Khalistan figure Hardeep Singh Nijjar three months earlier in Surrey, British Columbia.
Month earlier, Canada had paused negotiations on an Early Progress Trade Agreement or EPTA, which till then, both countries had been optimistic about finalising in 2023 prior to the bilateral breakdown.
Who is Mark Carney?
- Mark Carney was born in Fort Smith, Northwest Territories, on March 16, 1965, and raised in Edmonton, Alberta.
- Carney ran the Bank of Canada from 2008 to 2013 and the Bank of England from 2013 to 2020. After helping Canada manage the worst impacts of the 2008 financial crisis, he was recruited to become the first non-Brit to run the Bank of England since it was founded in 1694.
- In 2020, he began serving as the United Nations' special envoy for climate action and finance.
- Carney is a former Goldman Sachs executive. He worked for 13 years in London, Tokyo, New York and Toronto, before being appointed deputy governor of the Bank of Canada in 2003. He has no experience in politics.
- Carney received a bachelor's degree in economics from Harvard University in 1988, and master's and doctoral degrees in economics from Oxford University. Like many Canadians, he played ice hockey, serving as a backup goalie for Harvard.
- Carney has Canadian, UK and Irish citizenship. He has moved to eventually have solely Canadian citizenship, which is not required by law but seen as politically wise.
- His wife Diana is British-born and he has four daughters.
(With inputs from AP)
