Ottawa Keen To Rebuild Trade Ties With New Delhi, Says Canadian Trade Minister

Canadian Trade Minister Maninder Sidhu. (AFP file photo)

Canada and India are seeking to restore and strengthen trade relations after a two-year pause, with Ottawa expressing interest in restarting trade negotiations under “a new process,” Canadian Trade Minister Maninder Sidhu said on Thursday.

Sidhu, who is on a three-day visit to India, held talks with Commerce Minister Piyush Goyal. He described the discussions as “very productive,” focusing on key sectors such as 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 news agency Reuters.

The visit represents a significant high-level engagement since Canada paused broad trade pact negotiations in 2023, following a deterioration in bilateral ties after Ottawa accused New Delhi of involvement in the killing of a Canadian Sikh separatist.

Sidhu said both sides are now “in early discussions to restart the process,” taking into account global economic shifts, including high tariffs imposed by the United States on goods from both countries.

He highlighted that Canada’s new government under Prime Minister Mark Carney brings “new focus, energy, and mandate” to enhance trade and attract investment from India, particularly in the energy and critical minerals sectors.

“Canada has every element needed to build an electric battery,” Sidhu added, welcoming Indian investment in mining and infrastructure projects.

Relations between the two countries have started to improve since Prime Minister Narendra Modi met Carney on the sidelines of the G7 summit in June. India remains a priority market for Canada, with two-way trade in goods and services reaching about $31 billion in 2024, largely in Canada’s favour due to $16 billion in services exports.

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

During his visit, Sidhu met executives from major Indian companies, including Tata, who expressed interest in expanding their activities in Canada. He also said Goyal had promised to visit Canada soon with a trade and investment delegation, signalling renewed momentum in bilateral economic cooperation.

(With inputs from Reuters)