Canada aims to reset trade ties with India

Canada is looking for a “fresh start” in trade talks with India after a two-year pause, with Ottawa aiming to reopen negotiations under what it calls “a new process”, Trade Minister Maninder Sidhu said on Thursday.

Sidhu, in India for a three-day visit, met Commerce Minister Piyush Goyal for what he described as a productive ministerial dialogue covering critical minerals, clean energy, agriculture, artificial intelligence and aerospace.

“The meeting went really well. We focused on areas of opportunity – aerospace, AI, critical minerals, energy, agriculture – and what more we can do together,” Sidhu told Reuters after the talks.

His visit is one of the most significant trade engagements since Canada halted discussions on a wider trade pact in 2023, following tensions after Ottawa accused New Delhi of involvement in the killing of a Canadian Sikh separatist.

Sidhu said the two sides were now “in early discussions to restart the process”, noting the broader global trade environment, including high US tariffs affecting goods from both countries.

He added that Canada’s new Prime Minister Mark Carney brought “a new focus, new energy and new mandate”, with a strong interest in building cooperation with India, particularly in energy and critical minerals.

“Canada has every element needed to build an electric battery,” Sidhu said, adding that Ottawa welcomed investment from India in mining and infrastructure linked to critical minerals.

Relations between India and Canada have begun to improve following Prime Minister Narendra Modi’s meeting with Carney on the sidelines of the G7 summit in June.

India remains a priority market for Ottawa, with two-way goods and services trade reaching around $31 billion in 2024. Canada’s services exports accounted for about $16 billion of that.

India is also Canada’s largest source of immigrants, and had nearly 393,000 Indian students in 2024. More than 1.8 million Canadians are of Indian origin.

During his visit, Sidhu met executives from major Indian groups, including Tata, and said they were keen to expand their presence in Canada.

He added that Goyal had committed to visiting Canada soon with a trade and investment delegation.

(With inputs from Reuters)