As Mark Carney prepares for his trip to Asia this week, he confronts a significant challenge: Canada’s reputation as an unreliable trading partner. This perception is not just held by the United States or the United Kingdom, but notably by India, which has publicly labeled Canada as such. This situation complicates Carney's mission, as he aims to strengthen trade ties in the Indo-Pacific region.

Carney's office announced that he will travel to Malaysia, Singapore, and South Korea from October 24 to November 1, 2025. The goal is to enhance trade relationships, bolster defense partnerships, and create new opportunities for Canadian workers and businesses. However, the backdrop of his visit is India's skepticism regarding Canada’s reliability as a trading partner.

In a recent interview on CTV’s Question Period, India’s High Commissioner Dinesh Patnaik addressed the issue of sourcing Canadian oil and gas. He stated, "We look for suppliers where they can be a reliable supplier. Not a supplier who today says, ‘Okay, I’m going to supply you,’ and tomorrow says, ‘No, I have this problem with you, I cannot supply you.’" This statement underscores India's hesitance to engage with Canada amid ongoing diplomatic tensions.

Relations between Canada and India deteriorated sharply after former Prime Minister Justin Trudeau accused the Indian government of involvement in the assassination of Hardeep Singh Nijjar on Canadian soil in June 2023. Although tensions existed prior to this accusation, the fallout has made it increasingly difficult for Canada to rebuild trust with India.

Carney's objective is to position Canada as a dependable energy partner in Asia. However, many countries in the region remain cautious. The abandonment of the $36 billion Pacific Northwest LNG project in 2017, primarily due to regulatory delays, has left a lasting impression. This project had backing from major international companies, including Petronas and Sinopec, but was ultimately deemed unviable under the existing regulatory framework.

Furthermore, Canada’s trade relations with Europe are also strained. The country lacks a free trade agreement with the United Kingdom, and several EU nations have yet to ratify the EU-Canada trade deal. Negotiations with the UK stalled in January 2024 over access to the Canadian cheese market, highlighting ongoing protectionist policies in Canada’s dairy sector and other industries.

As Carney embarks on his diplomatic mission, he faces the daunting task of addressing these underlying issues. Without significant reforms to Canada’s regulatory environment and trade policies, his efforts may yield limited results. The real work, experts suggest, must occur within Canada’s Parliament to foster a more favorable investment climate and improve international perceptions of the country as a reliable trading partner.