Carney Lays Out G7 Priorities, Looks to Ease India, China Tensions

Canadian Prime Minister Mark Carney will get his first dose of summit-hosting next week as leaders from G7 countries and the Asia Pacific flock to Kananaskis, Alberta, for a historic and potentially thorny three-day meeting.

Last weekend, Carney laid out his priorities for the summit — which runs from Sunday to Tuesday — including “protecting our communities and the world,” building energy security, accelerating the digital transition, and securing “the partnerships of the future.” These priorities can also be seen as broader foreign-policy goals for the prime minister, who promised a full foreign policy review during the recent election campaign.

For Ottawa, India appears to be one of those “partnerships of the future.” Last week, Carney extended a summit invite to Indian Prime Minister Narendra Modi, a significant move that could herald a reset in Canada-India diplomatic relations. Carney said last Friday that “there are certain countries that should be at the table for [G7] discussions,” and highlighted India’s economic heft, its status as the world’s most populous country, and support by other G7 leaders for India’s attendance.

“Bilaterally, we have now agreed to continued law-enforcement-to-law-enforcement dialogue, so there’s been some progress on... issues of accountability,” noted Carney, alluding to strained relations between the two countries’ law enforcement agencies. Canada-India ties cratered in September 2023 after then-prime minister Justin Trudeau accused the Indian government of involvement in the June 2023 murder of Canadian Hardeep Singh Nijjar in Surrey, B.C.

Some Sikh organizations in Canada denounced Carney’s move, calling it “a direct insult to the Sikh community and a grave threat to the integrity of Canada’s institutions.” The Business Council of Canada endorsed Carney’s invitation to Modi.

In Kananaskis, Ottawa and New Delhi may look to formally reset relations, including by committing to reinstate high commissioners or resuming long-troubled trade talks.

In the first four months of 2024, Canada-India goods trade hit C$3.78 billion. Over the same period in 2025, trade amounted to C$3.51 billion, a decrease of 7.1 per cent year-over-year. Bilateral trade in services fell 9.1 per cent.

Leaders from Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa, and Ukraine are also expected to attend the summit next week. Indonesia’s leader was invited but is unlikely to attend.
 

High-stakes summitry awaits

The summit will be a test for Carney but also for other G7 leaders, many of whom are looking to seal trade deals with U.S. President Donald Trump in Kananaskis.

Meanwhile, Japan’s top trade negotiator was set to make his sixth visit to Washington, D.C., this week. Japanese Prime Minister Ishiba Shigeru is reportedly vying to close a deal with Trump next week, in advance of all-important upper-house elections in July, although the two sides have “yet to find common ground,” according to Kyodo News.

South Korea’s new president, Lee Jae-myung, spoke with Trump just days after being elected. During the 20-minute conversation, Lee and Trump agreed to “quickly conclude a mutually beneficial tariff deal.” Additionally, according to Lee's spokesperson, the two presidents “shared stories and experiences in presidential elections, such as attempted assassinations and political hardships.”
 

‘Recalibrating’ Canada’s relationship with China

Carney also spoke with Chinese Premier Li Qiang last week. The two leaders discussed trade, tariffs, and the fentanyl crisis, and “agreed to regularize channels of communication,” according to a Canadian readout.

Carney told reporters that the call was “the start of a process of recalibrating the relationship with China.” The prime minister said that reopening dialogue with Beijing was “very important.” Chinese tariffs on Canadian agriculture products and seafood remain in effect, as do Canadian tariffs on Chinese electric vehicles. The two sides also agreed to restart discussions through a bilateral economic and trade committee, which have been on pause since 2018.