Canada is maintaining its focus on diversifying its trade relationships, as its Minister of Energy and Natural Resources, Tim Hodgson, prepares for a trip to India from January 27 to 30, 2026. Hodgson will be participating in India Energy Week (IEW) 2026 in Goa, followed by meetings in New Delhi. This visit underscores Canada's commitment to exploring new trade opportunities and deepening economic partnerships in the Indo-Pacific region.
The visit takes place against the backdrop of Canada's broader strategy to reduce its reliance on the U.S. market and expand its trade relationships with other countries. International Trade Minister Maninder Sidhu has emphasized the importance of engaging with India to expand trade and economic opportunities, particularly in the agriculture and energy sectors. Sidhu noted India is "destined to be the third-largest economy in the world" and requires more energy and food, which Canada can provide.
Prime Minister Mark Carney is also planning a visit to India soon and possibly Australia in March as part of this trade diversification push. Carney and Indian Prime Minister Narendra Modi agreed at a meeting in November 2025 to begin formal negotiations towards a comprehensive economic partnership agreement. Talks are expected to begin next month. The aim is to double bilateral trade to USD 50 billion by 2030.
During his visit, Minister Hodgson is expected to discuss potential deals and cooperation on critical minerals, uranium, and liquefied natural gas, resources that Canada possesses in abundance. India's growing economy is creating unprecedented demand for stable resource partnerships to support industrial expansion across multiple sectors. Indian executives have shown particular interest in direct investment opportunities, including on-site processing capabilities that leverage Canada's geographic advantages for Asian market access.
Canada has been attempting to secure a trade deal with India since 2010. A comprehensive economic partnership agreement (CEPA) would enable systematic trade expansion through reduced barriers and enhanced cooperation frameworks, providing a legal foundation for long-term investment and partnership development.
Despite these efforts, Canada maintains that it has a strong relationship with the U.S., which remains one of the world's largest bilateral trade relationships.
Canada is also actively pursuing trade diversification through agreements and partnerships with other countries and regions, including the EU, China, Qatar, ASEAN, Thailand, Philippines, and Mercosur.
