Canada races to seal India trade pact by year-end, deepen EU ties

OTTAWA: Canada is accelerating efforts to finalize a trade agreement with India and enhance its relationship with the European Union, according to Foreign Minister Anita Anand. The drive to minimize dependence on the United States comes in the wake of President Donald Trump's trade policies, and aligns with Prime Minister Mark Carney's strategy to broaden trade partnerships, including with China and other nations, while preserving ties with the US on security matters.

"We aim to finalize the Comprehensive Economic Partnership agreement with India by year-end," Anand stated to Reuters. Canada intends to double its trade with nations other than the US within a decade. Canada and the EU are set to discuss collaboration on areas like critical minerals, energy, and artificial intelligence during an upcoming summit.

Canada has already signed a free trade agreement with Indonesia and is negotiating a similar pact with the Association of Southeast Asian Nations (ASEAN) for 2026. The country has established 15 trade agreements with 51 countries and 1.5 billion people, emphasizing the importance of national resilience and sovereignty. Anand highlighted that negotiations on the India accord are advancing and that a delegation led by Canadian Trade Minister Maninder Sidhu had recently visited India.

Prime Minister Narendra Modi is scheduled to travel to Canada in December, with the potential for the trade deal to nearly double bilateral goods and services trade to USD70 billion annually by 2030, up from USD30.4 billion in 2025. The agreement would also bolster bilateral trade, with goods exchange reaching USD10.9 billion in 2025, as Canadian exports declined by 26.5% compared to 2024, while imports from India increased by 18.9%.

The Canada-Uruguay Free Trade Agreement, signed earlier this year, saw Canadian company Cameco transfer a U.S.$2.6 billion (USD1.8 billion) uranium supply contract to India, a tangible outcome of strengthened cooperation. Canada's Fairfax Financial Holdings is set to acquire a majority stake in India's IDBI Bank for U.S.$5.56 billion, the largest cross-border bank deal between the two nations.

The two countries aim to mend relations following a diplomatic row over the 2023 killing of Sikh separatist Hardeep Singh Nijjar in Canada. Restoring ties is a gradual process, with national security and the rule of law being paramount, according to Anand.