Canadian trade minister Maninder Sidhu visits India as December trade deal deadline nears

Canadian International Trade Minister Maninder Sidhu arrives in India on Monday with a delegation of nearly 300 representatives from Canadian businesses, as New Delhi and Ottawa intensify negotiations to conclude a Comprehensive Economic Partnership Agreement (CEPA) before the end of 2026.

The five-day visit, running from October 12 to 17, comes less than a month after Sidhu’s previous trip to India and follows the fifth round of trade negotiations held in Canada from October 5 to 9. He is expected to meet Union Commerce and Industry Minister Piyush Goyal, while the Canadian trade mission will also travel to Mumbai and Bengaluru.

The visit comes ahead of Prime Minister Narendra Modi’s expected trip to Canada in December, when he is likely to meet his Canadian counterpart, Mark Carney. Both leaders have set a year-end deadline for the trade agreement, with further rounds of negotiations expected in November to resolve outstanding issues.

Negotiators seek breakthrough on outstanding issues

People familiar with the matter said the two sides could hold another couple of rounds of discussions in November following the latest negotiations. While the talks are on track to conclude by the end of next month, political direction may be needed to resolve the remaining differences and finalise the agreement.

Indian officials have said New Delhi has made its best possible offer and is awaiting a reciprocal response from Ottawa.

India’s High Commissioner to Canada, Dinesh Patnaik, said New Delhi had presented an excellent offer and expressed confidence that an agreement would be reached soon.

“We are confident we will have a deal soon. Negotiators on both sides have been working hard, led by the respective ministers to finalise details as early as possible,” Patnaik said.

The negotiations have gathered pace since the two countries agreed to resume work on the CEPA, with both governments seeking to turn improving political engagement into stronger economic cooperation.

Nearly 300 Canadian delegates to visit Mumbai and Bengaluru

Canada’s foreign ministry has described the delegation as the largest trade mission the country has sent to India in more than 30 years. The mission will bring together businesses from several sectors, including aerospace and space, clean technologies, energy transition, information and communications technology, life sciences and agri-food.

The programme is intended to help Canadian companies establish commercial partnerships, identify investment opportunities and expand their presence in the Indian market.

Canada is looking to strengthen economic ties with India as part of its broader effort to diversify trade away from its heavy dependence on the United States. Carney has made the agreement with India a priority amid continuing trade tensions with Washington.

Modi is expected to travel to the United States, Canada and Belgium around the middle of December. He is scheduled to attend the G20 Summit in the US, while the proposed visits to Canada and Belgium are expected to focus on strengthening trade and economic ties. The India-European Union free trade agreement is also expected to be signed during his visit to Belgium.

Both countries target $70 billion in bilateral trade

India and Canada aim to increase their two-way trade to $70 billion by 2030. Their combined trade in goods and services stood at $30.4 billion in 2025, including merchandise trade worth $13.6 billion.

Canadian exports to India were valued at $3.9 billion, led by vegetables, mineral fuels and oils, and wood pulp. India exported merchandise worth $9.7 billion to Canada, including precious stones and metals, machinery and pharmaceutical products.

The proposed CEPA is expected to provide a framework for expanding market access and investment opportunities across these sectors. Both governments have also identified energy and critical minerals as important areas for cooperation.

As part of their broader economic engagement, the two countries have announced a strategic energy partnership covering areas such as liquefied natural gas, liquefied petroleum gas, uranium, solar power and hydrogen. A $2.6 billion agreement involving Canadian uranium producer Cameco and India’s Department of Atomic Energy provides for the supply of nearly 22 million pounds of uranium between 2027 and 2035. The countries have also agreed to strengthen cooperation on critical minerals and energy supply chains.

Trade negotiations follow improvement in bilateral relations

The push for a trade agreement comes after a prolonged period of strained relations. Ties deteriorated sharply in 2023 when then Canadian Prime Minister Justin Trudeau alleged that Indian government agents were involved in the killing of Khalistani separatist Hardeep Singh Nijjar in Canada. India rejected the allegations.

Relations have gradually improved since Carney became prime minister in 2025, with both governments working to restore engagement while pursuing separate economic and security discussions.

The two countries formally launched CEPA negotiations in New Delhi on March 2, 2026, when Goyal and Sidhu signed the terms of reference in the presence of Modi and Carney. The first round of virtual discussions took place in March, followed by successive rounds aimed at narrowing differences.

The agreement is intended to deepen commercial links, encourage investment and give businesses on both sides greater access to each other’s markets. With the December deadline approaching and a possible Modi visit to Canada on the diplomatic calendar, the coming weeks are expected to be crucial for the negotiations.