Canada and India are advancing towards the finalisation of a trade deal that includes a US $2.8 billion uranium supply deal, as both seek greener export pastures away from US dominance.
A report by an international new organisation said Canada would ship uranium to India for 10 years if the deal gets finalised, adding that the uranium would be supplied by Canada’s Cameco Corp.
The Canadian Foreign Minister, Anita Anand, said on Monday that Ottawa is moving quickly in its trade deal negotiations with India, besides having a new foreign policy in response to US President Donald Trump’s trade war.
“The leaders were adamant that this work proceed as quickly as possible so that timing is going to be expeditious,” she said in an interview with an international news agency.
The minister added that Canadian Prime Minister Mark Carney’s goal was to double non-US trade over the next decade, especially in the wake of Canada being one of the most trade-dependent countries in the world. At least 75 per cent of Canada’s exports go to the US, while Canada is India’s seventh largest trade partner for goods and services, and one of the largest foreign investors in India.
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This marks a shift in the relations between India and Canada, which were strained since 2023, following the Canadian police’s accusations against New Delhi of playing a role in the assassination of a Canadian Khalistani leader, Hardeep Singh Nijjar, in June, 2023.
The two countries began mending ties in June this year, when Carney invited Prime Minister Narendra Modi to the G7 summit in Alberta, followed by both countries agreeing to restore their top diplomats in August.
This past weekend, Carney and PM Modi met again at the Group of 20 summit in South Africa, where the two leaders agreed to restart trade deal talks.
“Thus is a step-by-step process. And in the last six months, significant steps have been taken,” Anand said.
A statement from Prime Minister Modi’s office confirmed on Sunday “leaders of the two countries have agreed to begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), aimed at doubling bilateral trade to USD 50 billion by 2030”.
Meanwhile, Canada and the US’ relations remain sour after Trump ended trade talks with Carney following the Ontario provincial government airing an anti-tariff advertisement in the US.
While Canada remains ready to resume talks with the US, with Anand saying they “look forward to getting back to the table”, Canada has also been forced to change its foreign policy as the global economic environment becomes more unstable. Even though most of Canada’s exports to the US are exempted by the USMCA trade agreement, that deal will need to be reviewed in 2025.
“This is a completely new approach to foreign policy that is responsive to the global economic environment we find ourselves in,” said Anand, adding, “There is a new government, a new foreign policy, a new Prime Minister and a new world order where countries are becoming more protectionist and this is a moment for Canada as a trading nation.”
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