Canada Rushes to Finalize India Trade Deal and Boost EU Ties Amid US Protectionism

POLICY WIRE — New Delhi, India — Canada is actively moving to finalize a trade agreement with India and strengthen relationships across the European Union as part of an effort to minimize economic dependence on the United States. Foreign Minister Anita Anand announced on Wednesday that the push responds directly to President Donald Trump’s protectionist trade measures.

This commercial shift forms a cornerstone of Prime Minister Mark Carney’s broader strategy to expand global trade networks. While Ottawa intends to sustain cooperation with Washington regarding security, defense, and trade, it is simultaneously prioritizing deeper partnerships with China, the EU, and other international markets.

During an interview at the Canadian High Commission in New Delhi, Anand confirmed that the administration aims to conclude the Comprehensive Economic Partnership agreement with India before the conclusion of the year. She noted that the overarching objective is to double non-US commerce over the course of the next decade.

Bilateral discussions between Canada and the EU are scheduled for later this month at a summit focusing on artificial intelligence, energy, and critical minerals. These talks will expand upon existing commercial frameworks established under the Comprehensive Economic and Trade Agreement, according to Anand.

Canada is also broadening its global footprint by implementing a free trade agreement with Indonesia last year and targeting a potential pact with the Association of Southeast Asian Nations in 2026. Ottawa has successfully finalized 15 distinct trade agreements encompassing 51 countries and a consumer base of 1.5 billion people.

Anand emphasized that these diplomatic maneuvers are fundamentally tied to national sovereignty and economic resilience. She explained that the country must guarantee it does not remain vulnerable to any single foreign market for maintaining its economic stability.

Progress on the India pact continues to advance steadily, highlighted by recent visits from Indian trade delegates to Canada and Canadian Trade Minister Maninder Sidhu traveling to India alongside a commercial delegation. Furthermore, Prime Minister Carney and Indian Prime Minister Narendra Modi have discussed the framework, with Modi anticipated to visit Canada in December.

Government projections indicate the proposed pact could more than double total bilateral goods and services trade to $70 billion annually by 2030, rising from the $30.4 billion recorded in 2025. Total goods trade with India reached $10.9 billion in 2025, though Canadian exports experienced a 26.5% decline from 2024 while imports from India expanded by 18.9%.

Practical results of this tighter bilateral alignment include a C$2.6 billion ($1.8 billion) uranium supply contract established earlier this year between Indian buyers and Canadian firm Cameco. Additionally, Canada’s Fairfax Financial Holdings agreed to acquire a controlling stake in India’s IDBI Bank for 528.78 billion rupees ($5.56 billion), marking the largest cross-border banking transaction in India’s history.

The renewed diplomatic and commercial engagement follows a prior period of bilateral friction stemming from the 2023 assassination of Sikh separatist Hardeep Singh Nijjar in Canada. Anand stated that repairing diplomatic channels remains a step-by-step procedure rooted firmly in the rule of law and national security.

Reporting by Policy-Wire (PW)