Get Asia-Pacific Right: Carney's Pivotal Test of Leadership

Carney's Asia-Pacific pivot tests Canada's leadership, demanding bold India ties and principled China restraint.

- DEAN BAXENDALE

Prime Minister Mark Carney's strategic tilt toward the Indo-Pacific is not merely symbolic; it is the litmus test of his foreign policy and leadership legacy. His diplomatic re-engagement with India, combined with recalibrated ties to the United States and Europe, represents a careful but necessary reconfiguration of Canada's global positioning. However, it is also a tightrope act that demands unflinching clarity on principles, particularly in any re-engagement with the People's Republic of China (PRC).

Carney's appearance alongside Indian Prime Minister Narendra Modi at the 57th meeting of the G7 was not only a visual reset of the frayed bilateral relationship, but a deliberate message: For those that complained to the media condemning the invitation ought to get with the program and understand that Canada is open for strategic business with South Asia. The revival of the Comprehensive Economic Partnership Agreement (CEPA) talks with India, long stalled by diplomatic tensions, marks a pragmatic turn. India—with its massive consumer base, innovation ecosystems, and democratic values—is a logical partner for Canada's new economic diversification agenda. As an alternative to the risks and moral hazards of deepened ties with China, India offers growth without compromise.

It is here that Carney's ability to balance global ambition with domestic strength will be tested. His much-publicized "One Canadian Economy" Act (Bill C-5) seeks to eliminate interprovincial trade barriers and unify infrastructure investments. This is no minor legislation; it is the economic spine upon which all other global engagements must depend. Without a strong, frictionless internal market and continental supply chain resilience, Canada cannot credibly present itself as a secure or attractive partner to India or any other Indo-Pacific state.