Canada looks to restart trade momentum with India as talks near launch

Canada’s international trade minister says rebuilding and expanding economic ties with India will be a key focus of the federal government’s trade diversification strategy in the months ahead.

International Trade Minister Maninder Sidhu said it is important for Canada to engage India on expanding trade opportunities, particularly in sectors such as agriculture and energy, as Ottawa looks to reduce reliance on traditional markets and strengthen links in the Indo-Pacific region.

Sidhu confirmed that formal negotiations toward a new economic agreement between the two countries are expected to begin in February. He said Canada plans to take a pragmatic approach to improving relations, which have faced diplomatic strain in recent years.

The minister said he travelled to India in November to explore new trade opportunities and held meetings with senior officials, including India’s energy minister, as part of efforts to identify areas of mutual economic benefit.

Sidhu made the remarks while attending the World Economic Forum in Davos, where Prime Minister Mark Carney is concluding a nine-day international trip aimed at attracting new investment and expanding Canada’s global trade partnerships. India is expected to be a central focus of that effort, with Sidhu noting the country is on track to become the world’s third-largest economy.

The Prime Minister’s Office has previously confirmed that Carney accepted an invitation from Indian Prime Minister Narendra Modi to visit India early this year. India’s High Commissioner to Canada, Dinesh Patnaik, has said the visit is expected to take place in the coming weeks.