Canada and India are reportedly on the verge of finalizing a significant uranium supply agreement valued at $2.8 billion, signaling a potential deepening of nuclear cooperation between the two nations. This development follows closely on the heels of renewed discussions regarding a Comprehensive Economic Partnership Agreement (CEPA) between the two countries, aiming to revitalize trade relations.
The potential agreement, which could span a decade, would involve Canada's Cameco Corp. supplying uranium to India's nuclear plants. The agreement is not likely a renewal of a previous agreement from 2015. The last agreement saw Cameco supply India with uranium valued at approximately $350 million over five years.
The announcement comes after a meeting between Prime Ministers Narendra Modi and Mark Carney on the sidelines of the G20 Leaders' Summit in Johannesburg. During this meeting, both leaders reaffirmed their commitment to longstanding civil nuclear cooperation and discussed expanding collaboration through long-term uranium supply arrangements. The CEPA aims to double bilateral trade to $50 billion by 2030.
India currently operates approximately 25 nuclear reactors, with six more under construction. Many of these reactors utilize Canadian Candu-derived pressurized heavy-water reactor designs. In line with this, broader cooperation between Canada and India could extend to Canada's efforts to build commercial small modular nuclear reactors in India.
The Canada-India Nuclear Cooperation Agreement, which came into effect in September 2013, ensures that any nuclear material, equipment, or technology exchanged between the two countries is used solely for peaceful applications and remains under International Atomic Energy Agency safeguards.
The resumption of trade negotiations and the potential uranium deal signify an improvement in relations between Canada and India, particularly as Canada seeks to diversify its trade relationships beyond the United States. The uranium supply agreement, if finalized, would represent a major advancement in Indo-Canadian relations, especially in the energy and strategic sectors.
