Canada’s trade minister said trade talks with India are “moving along really well” and could conclude in the coming months, as his country looks for new markets for its goods amid a tariff war with the U.S.
“I just came from India. We are making great headway,” Canadian Minister of International Trade Maninder Sidhu told Bloomberg TV’s Paul Allen on Tuesday.
The push to deepen economic ties with India comes as Canada faces rising trade tensions with the U.S. following the breakdown of negotiations between the two countries late last month. The dispute has added urgency to Prime Minister Mark Carney ’s efforts to diversify Canada’s trade beyond the U.S., including by forging closer economic ties with the European Union and India.
Earlier this year, Carney and his Indian counterpart Narendra Modi pledged to deepen cooperation in trade and supply chains during the Canadian leader’s first official visit to India, part of a broader effort to rebuild ties after years of strained relations.
New Delhi is also facing fresh tariff threats from Washington over its purchases of Russian oil, despite concluding a trade deal with the U.S. earlier this year. The pressure is prompting Indian refiners to look for alternatives and consider cutting purchases of Russian crude.
“They do need more energy. They are growing at an exponential rate,” Sidhu said of India, adding that the country is looking to Canada for nuclear capacity and liquefied natural gas . “That is a big part of the conversation. Fertilizer is also part of that conversation.”
Canada, a major supplier of potash, has also sought tariff concessions from India for the key fertilizer ingredient, Sidhu said.
The diversification push has started yielding results, Sidhu said, with non-U.S. exports rising 17 per cent last year, the most in almost 40 years. Shipments of Canadian crude oil , LNG and agricultural products to markets around the world are also increasing, he said.
Still, Sidhu stressed the importance of Canada’s economic relationship with the U.S., saying businesses and supply chains in the two countries are deeply intertwined. Canada, however, wants a fair deal for its industries.
“We’re going to continue to have those conversations with our American counterparts and see what we can get for our industries,” he said.
With assistance from Naman Tandon