After years of strained relations and uncertainty, India and Canada are recalibrating their bilateral engagement, with trade and business cooperation emerging as a renewed focus.

Both countries have faced economic pressures stemming from tariff measures imposed by U.S. President Donald Trump since the start of his second term. As a result, India and Canada are actively seeking to diversify trade partnerships to support economic growth while safeguarding domestic producers.

Canada, significantly affected by recent U.S. trade actions, is looking both inward and beyond its long-standing trade relationship with the United States to expand its global economic footprint and strengthen new international partnerships.

Canada’s Minister of International Trade, Maninder Sidhu, the second Canadian minister to visit India after Anita Indira Anand, has announced the launch of public consultations on four proposed free trade agreement negotiations. These include discussions with India, the United Arab Emirates, Thailand, and the Mercosur bloc.

According to an official communiqué, Canada is committed to building strong and diversified international partnerships that foster economic growth and create quality jobs. As part of its strategy to double Canadian exports to non-U.S. markets over the next decade, the proposed agreements aim to strengthen and stabilize trade relationships across fast-growing global economies.

Public consultations will help shape Canada’s negotiating positions and ensure that the benefits of future agreements reflect the interests and priorities of Canadians, said Sidhu. The consultations will run from December 13, 2025, to January 27, 2026, with submissions accepted until January 27, 2026.

“Canada is working to strengthen trade with reliable partners around the world and aims to double Canadian exports to non-U.S. markets in the next decade, which would generate $300 billion more in trade. Pursuing new trade negotiations will help reach this objective, open new markets and opportunities for our workers and businesses and create high-paying jobs across the country as part of our trade diversification strategy,” added Sidhu.

India and Thailand are identified as key partners under Canada’s broader Indo-Pacific strategy aimed at deepening economic ties across the region.

In 2024, India ranked as Canada’s seventh-largest trading partner in goods and services, with two-way trade totaling $30.8 billion. Canada’s merchandise exports to India reached $5.3 billion, reflecting a 3.5 percent increase from 2023, while services exports totaled $15.6 billion.

Thailand, the third-largest economy within the Association of Southeast Asian Nations in 2024, was Canada’s second-largest merchandise trading partner in the bloc. Canadian merchandise exports to Thailand were valued at $1.0 billion, while imports exceeded $5.3 billion.

Canada’s two-way merchandise trade with the United Arab Emirates reached $3.4 billion in 2024, including $2.6 billion in exports and $801.8 million in imports. The UAE remained Canada’s top merchandise export destination in the Middle East, with exports rising 24.0 percent in 2024 following a 14.2 percent increase between 2022 and 2023.

The Mercosur bloc, comprising Argentina, Bolivia, Brazil, Paraguay, and Uruguay, represented a combined GDP of $4.1 trillion and a population of 282 million in 2024, making it the world’s eighth-largest economy. Canada’s merchandise trade with Mercosur totaled $15.8 billion in 2024, with exports valued at $3.1 billion and imports at $12.8 billion.

On November 23, Prime Minister Mark Carney and Indian Prime Minister Narendra Modi announced an agreement to launch negotiations toward a potential Comprehensive Economic Partnership Agreement between Canada and India.

In anticipation of formal negotiations expected to begin in 2026, Global Affairs Canada has initiated public consultations through a notice in the Canada Gazette, inviting Canadians to submit views and priorities on enhanced trade and investment ties with India. Submissions from these consultations will help inform Canada’s approach and interests in CEPA negotiations.

Promoting trade and investment with high-growth markets such as India remains a priority for the Government of Canada. As part of this process, the government is inviting input from a wide range of stakeholders, including the general public; provincial, territorial, and municipal governments; businesses of all sizes, including small and medium-sized enterprises; industry associations; academics; civil society and non-governmental organizations; labor unions; Indigenous peoples; women and 2SLGBTQI+ stakeholders; community groups representing diverse experiences; students and youth; and other interested parties.

The notification states that feedback is sought on a broad range of CEPA-related issues, including goods and services of export or import interest; tariff reductions and non-tariff barriers; technical, sanitary, and phytosanitary measures; environmental protection and conservation; labor rights and cooperation; support for traditionally underrepresented groups in trade, including women and Indigenous peoples; and opportunities to advance transparency, anti-corruption measures, responsible business conduct, good governance, the rule of law, and human rights.

Submissions received through the consultation process will help guide Canada’s negotiating strategy for CEPA talks with India, a free trade agreement that has remained under discussion for more than a decade.

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