Canada targets India trade pact by year-end
Canada is aiming to finalize a trade deal with India by the end of this year, according to Foreign Minister Anita Anand. The Comprehensive Economic Partnership Agreement (CEPA) with India is seen as a key part of Ottawa's strategy to diversify its trade partnerships, with the goal of doubling non-US trade over the next decade. This push aligns with the Canadian government's efforts to strengthen ties with various markets, including the European Union, China, and others, while continuing to work with the US on trade, defense, and security matters.
Anand noted that Canada and the EU are set to discuss cooperation in critical areas such as minerals, energy, and artificial intelligence during an upcoming summit. Canada has already signed free trade agreements with Indonesia and is working towards finalizing a deal with the Association of Southeast Asian Nations (ASEAN) in 2026. Currently, Canada has 15 trade agreements with 51 countries and around 1.5 billion consumers, highlighting the importance of reducing dependency on a single country for economic strength.
Trade negotiations are progressing with India, with Indian trade negotiators visiting Canada recently and Canadian Trade Minister Maninder Sidhu in India along with a business delegation. If successful, the agreement could potentially double bilateral trade to $70 billion by 2030, up from $30.4 billion in 2025. Although Canadian exports to India fell by 26.5% in 2025, imports from India increased by 18.9%.
Signs of growing economic cooperation include a C$2.6 billion uranium supply agreement between Canadian company Cameco and India, and Fairfax Financial Holdings acquiring a majority stake in IDBI Bank for $5.56 billion, expected to become India's largest cross-border banking deal. Despite recent diplomatic tensions stemming from the killing of Sikh separatist Hardeep Singh Nijjar, Canada and India are working to mend relations, focusing on national sovereignty and rule of law as they strive to deepen their economic partnership.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
