India-Canada trade deal gaining momentum, may conclude in months: Sidhu

Canada’s Trade Minister Maninder Sidhu says negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with India have strong momentum and could conclude in the coming months, highlighting a focus on mutual growth and collaboration.

Canada’s Minister of International Trade, Maninder Sidhu, says negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with India are gaining strong momentum, with a potential conclusion expected in the coming months following the completion of the fifth round of talks. Highlighting the energy and drive behind the discussions, Sidhu noted that the partnership is anchored in mutual growth.

"What I can share is that the energy, focus, and momentum are there. With Canada, it's always about mutual prosperity. It's not just about taking; it's about giving and taking, shared responsibilities and mutual collaboration. And so, there's a lot of collaboration," Sidhu told ANI.

Largest Trade Mission in 30 Years

Sidhu is currently in India leading a delegation of 300 Canadian business representatives, the largest trade mission in 30 years, spanning sectors like clean technology, space, aerospace, and agritech. Expressing gratitude for the reception, he stated, "I want to thank India for the hospitality extended to my delegation of 300 Canadian business delegates, the largest in 30 years. It's something to celebrate. The last time this happened was in January 1996."

Synergies in Energy, Minerals, and Technology

Pointing to India's fast-paced economic expansion, growing at six to seven per cent year over year, Sidhu emphasised that Canada is well-positioned to meet India's rising resource and infrastructure demands. He pointed specifically to energy and critical minerals as primary areas of synergy.

"India is requiring about 70 per cent more energy by 2035. We're investing in plenty of LNG terminals in Canada. We're going to be a top-five LNG exporter in the world. In addition to that, it's about LPG. That's part of the conversation," Sidhu explained.

He also underscored potential cooperation in the nuclear sector, noting Prime Minister Narendra Modi's SHANTI Act initiative to expand nuclear capacity twelvefold: "Canada has the capabilities and nuclear technology, including uranium, to support India in its objectives. And so, when I talk about complementarities, I talk about that."

Furthermore, during interactions with major conglomerates in Mumbai, discussions heavily featured alternative supply chains for critical minerals essential for electric vehicles (EVs) and advanced manufacturing. "Canada is abundant in resources, and we're looking for partners to get those resources out of the ground," he said.

Canada's 'Plan A' for Economic Resilience

The trade dialogue also builds on ongoing talks between Sidhu and India's Minister of Commerce and Industry, Piyush Goyal. Noting that free trade agreements lower tariffs to boost business competitiveness, Sidhu welcomed India's ongoing trade expansion strategy.

"As you know, India has signed agreements with the European Union, the United Kingdom, and New Zealand, and now they're looking to do a deal with Canada. We welcome that opportunity, and we'll continue engaging with India for a fair deal that works for both of our countries," Sidhu said, adding that current engagements represent "just the tip of the iceberg".

Canada’s push for a trade deal with India is partly driven by the need to reduce dependence on the US. Furthermore, Sidhu emphasised that market diversification is Ottawa's core "Plan A" to build long-term economic resilience and provide domestic businesses with vital global options, even as trade negotiations with India enter their final stretch.

Highlighting the strategic importance of expanding trade partnerships beyond a single market, as they have with the US, Sidhu stressed that heavy reliance leaves suppliers vulnerable to price dictation. "We have made it clear that Plan A is always diversification. Why is that important? If you have only one customer buying your product, they will dictate the price. So, we need to give our businesses options and opportunities, and that's why Plan A is about diversification," Sidhu noted.

Advancing Global Trade Partnerships

While reaffirming that the United States remains Canada’s largest and most crucial trading partner, Sidhu pointed to an aggressive wave of global trade agreements designed to bolster economic security. Highlighting recent diplomatic milestones, he added, "Since last year, we've signed multiple trade agreements with Indonesia and Ecuador. I just completed one with the UAE in a record 47 days, the fastest a trade agreement has ever been negotiated by Canada. With the European Union, we're working on defence procurement. We're now negotiating, as you know, with India, ASEAN, the Philippines, Saudi Arabia and Turkey."

Earlier in the day, Commerce and Industry Minister Piyush Goyal interacted with Minister Maninder Sidhu to discuss advancing the India-Canada Comprehensive Economic Partnership Agreement (CEPA) negotiations. India and Canada are working towards an agreement aimed at unlocking additional opportunities for businesses and workers (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)