Canada Signs 4 India MOUs to Build Supply Chains as It Seeks Alternatives to 75% U.S. Export Reliance
Updated
Updated · The Sunday Guardian · Aug 22
Canada Signs 4 India MOUs to Build Supply Chains as It Seeks Alternatives to 75% U.S. Export Reliance
3 articles · Updated · The Sunday Guardian · Aug 22
Summary
March MOUs between Canada and India cover technology, energy, AI and critical minerals, positioning India as a key partner in Ottawa’s push to diversify trade and build higher-value supply chains.
About 75% of Canadian merchandise exports still go to the United States, and recent U.S. tariff threats — including a proposed 50% levy on roughly $20 billion of goods — exposed the risks of relying too heavily on one market.
Canada’s revived China strategy adds another vulnerability: 2024 two-way merchandise trade reached about $118.4 billion, but Canadian exports were only $29.8 billion and remained concentrated in resources rather than processing and manufacturing.
Critical minerals underline the concern, with China controlling about 70% of processing capacity for 19 of 20 strategic minerals tracked by the IEA, limiting the value of Canada’s raw-material base unless it secures trusted refining and industrial partners.
The broader argument is that Canada should pair North American supply-chain security with deeper ties to India and other trusted economies, rather than replace U.S. dependence with new exposure to China.