Canada aims for India trade deal by year-end, minister says

The momentum to reach a trade deal with India is there, says Canadian International Trade Minister Maninder Sidhu. Photo by Anindito Mukherjee /Bloomberg

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Canada is looking to conclude a trade deal with India by the end of the year as the two countries look to strengthen economic ties and diversify partnerships amid growing global uncertainty.

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Negotiators from India and Canada began a fifth round of talks from Oct. 5, building on discussions that concluded last month. Prime Minister Narendra Modi is expected to visit Canada in December and sign a completed trade deal.

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“The momentum is there, the energy is there to get it done,” Canadian International Trade Minister Maninder Sidhu said in an interview with Bloomberg’s Haslinda Amin. “Hopefully we will get it done this year. That is the focus.”

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The push to deepen economic ties with India comes as Canada faces rising trade tensions with the US following the breakdown of negotiations between the two countries. India, meanwhile, is contending with fresh tariff threats from a new law that gives Donald Trump the power to impose levies of as much as 100% on countries that purchase Russian oil and gas.

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Canada sees opportunities to deepen ties with India in mining and food security, while also identifying infrastructure investment and nuclear energy as areas for deeper cooperation.

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“The business community wants to see this happen,” Sidhu said of the trade deal.

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Trade between Canada and India is currently small. The two countries exchanged $30.4 billion of goods and services last year, according to Canadian government data.

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“The leaders have set an ambitious target to go from $30 billion to $70 billion,” Sidhu said. “How are we going to get there? Many of the conversations I’ve had in Mumbai with some of the conglomerates is we want to do more on energy. We know we want to do more in critical minerals.”

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He signaled Ottawa’s interest in participating in India’s expansion plans.

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“As India grows, Canada grows. We want to support India,” Sidhu said. “We can help India build all the supply chains. Negotiations are always tough but we are going to do what is best for our businesses.”

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Nuclear energy is another potential area of cooperation. India is opening up its tightly controlled nuclear industry to private companies as it seeks to rapidly expand atomic power generation.

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That could create opportunities for Canada, which has some of the world’s largest uranium resources as well as nuclear technology and expertise, to supply fuel and participate in new projects.

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—With assistance from Anup Roy and Shruti Srivastava.

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