Canada Aims to Conclude India Trade Deal by Year-End, Minister Says

Canada is optimistic it can finalize a comprehensive free trade agreement with India by the end of the year, according to the country's trade minister, with negotiations focused on key sectors like energy and critical minerals.

In an interview with Reuters during a visit to Mumbai, Canadian Minister for International Trade Maninder Sidhu said he was "very, very optimistic and energetic that we can get it done in the coming months." The timeline aligns with a previous goal set by the two countries to agree on a pact this year.

Path to an Agreement

The push to conclude the Comprehensive Economic Partnership Agreement (CEPA) is set to intensify in the coming weeks. A delegation of Indian trade negotiators is expected to be in Canada next month to advance the talks, Sidhu told Reuters.

A further high-level meeting between the leaders of both nations is likely to occur on the sidelines of the G-20 gathering in December. These meetings represent key opportunities to resolve outstanding issues and finalize the terms of the deal.

Energy and Minerals at the Core

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Discussions are heavily centered on securing stable supply chains for energy and strategic materials, reflecting a global trend toward economic diversification. Key areas of cooperation include:

• Liquefied Natural Gas (LNG): Canada is in talks with Indian firms about accessing and investing in its LNG export facilities. This includes a Shell-led project that launched last year and five other projects currently in various stages of development.
• Nuclear Energy: With India looking to significantly increase its nuclear power capacity, Sidhu noted that Canadian companies are well-positioned to help build up the domestic supply chain.
• Critical Minerals: A number of major Indian conglomerates, including Reliance Industries, Mahindra and Mahindra, and the JSW Group, are exploring investments in Canadian critical mineral projects to secure future supplies.

Strategic Context: Securing Supply Chains

The minister highlighted that the motivation for these investments is partly driven by a global push to de-risk and diversify sourcing. Sidhu noted that companies are increasingly pursuing co-investments as supply chains get "weaponised," signaling a strategic alignment between the two countries on economic security.