Canada Optimistic About Concluding Trade Talks With India by Year-End

Canada is optimistic that negotiations on a comprehensive economic partnership agreement with India can be concluded by the end of 2026, as the two countries work towards expanding commercial ties across energy, critical minerals and other areas. 

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Canadian Trade Minister Maninder Sidhu expressed confidence about the timeline during an interview with Reuters in Mumbai. The year-end target follows an earlier commitment made during Canadian Prime Minister Mark Carney’s visit to New Delhi in March, when the two countries set out to work towards reaching a free trade agreement before the end of the year. 

The negotiations are expected to gather pace over the coming months, with Indian trade officials due to travel to Canada in October. 

Trade negotiations move towards next round 

India and Canada are striving to conclude a Comprehensive Economic Partnership Agreement, or CEPA, which is to be discussed in the coming days. 

Indian negotiators will be visiting Canada in the coming month. The topic might also be discussed between the leaders of the two nations later in the year, during the G20 summit in December. 

According to Sidhu, Canada seems confident that the negotiations would be completed as per the target time frame. 

The discussion follows as both nations try to identify areas where there is potential to increase their economic relationship, with the energy sector among the prominent ones. 

LNG projects emerge as an area of discussion 

Canada is in discussions with Indian companies over opportunities linked to its liquefied natural gas projects. 

A Shell-led LNG export facility was launched in Canada in 2025, while another five projects are at different stages of development. 

Talks with Indian companies cover both access to these projects and potential investments that could help secure supplies. Reuters reported that Sidhu did not provide further details on the discussions. 

The conversations reflect a broader focus on energy cooperation between the two countries. 

India and Canada explore nuclear energy cooperation 

Nuclear energy is another area being considered for greater cooperation. 

India is looking to significantly increase its nuclear energy capacity, while Canada has a long-standing presence in the nuclear industry. 

The discussions include the possibility of Canadian companies and industries participating in the development of a nuclear supply chain in India. 

No specific investment figures or project details were provided in the Reuters report. 

Indian companies explore Canadian critical mineral projects 

Critical minerals are also drawing interest from large Indian companies. 

Reliance Industries, Mahindra & Mahindra and the JSW Group are among the Indian business houses exploring investments in critical mineral projects in Canada, according to Sidhu. 

The potential investments are being considered as companies look for ways to secure their supply chains, including through co-investment arrangements. 

Further details on the size, timing or structure of these possible investments were not disclosed. 

With another round of negotiations expected in Canada next month and a possible meeting between the countries’ leaders around the G20 gathering in December, the coming months will determine whether India and Canada can complete the proposed economic partnership agreement within their year-end target.