Canada and India will pledge to broaden commerce in oil and fuel because the nations reboot their relationship after a diplomatic chill.
Ottawa will decide to ship extra crude oil, liquefied pure fuel and liquefied petroleum fuel to India, whereas New Delhi will ship extra refined petroleum merchandise to Canada, following a gathering between Canadian Vitality Minister Tim Hodgson and Indian Petroleum and Pure Gasoline Minister Hardeep Singh Puri, in accordance with a joint assertion seen by Bloomberg Information.
The ministers will meet at India Vitality Week in Goa on Tuesday, utilizing the occasion to relaunch a “ministerial vitality dialogue.” The mechanism, as soon as the principle channel for vitality cooperation between the 2 nations, fell dormant amid an explosive dispute over the killing of a Canadian Sikh activist.
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The renewed push marks considered one of Prime Minister Mark Carney’s main efforts to diversify Canada’s export markets at a time of escalating commerce tensions with the US. It additionally displays his authorities’s shift towards pragmatic, economy-first diplomacy with main Asian companions.
Hodgson and Puri can even decide to facilitating larger reciprocal funding in one another’s vitality sectors and to exploring collaboration in areas together with hydrogen, biofuels, battery storage, vital minerals, electrical energy techniques and the usage of synthetic intelligence within the vitality trade, in accordance with the assertion.
The relaunch of the dialogue indicators that each governments see untapped potential – and strategic worth – in tightening an vitality relationship that had been left to float.
Carney is anticipated to go to India within the coming weeks as a part of the reset. He and Prime Minister Narendra Modi restarted talks in November towards a complete financial partnership settlement.
Two-way items commerce between Canada and India hit C$13.3 billion ($9.7 billion) in 2024, and Ottawa sees way more room to develop – particularly in vitality. India accounts for simply 1 p.c of Canada’s vital minerals exports, a spot the federal government says underscores the dimensions of the chance. Canada started exporting LNG to Asia as of June 2025, and its LPG terminals have comparatively brief transport routes to India.
The growth of the Trans Mountain pipeline has opened a direct path for crude shipments to India, although most Canadian barrels headed there nonetheless transfer by the US Gulf Coast.
Carney’s India go to later this 12 months will observe his current journey to Beijing, the place he and President Xi Jinping agreed to scale back tariff obstacles – a transfer that spurred US President Donald Trump to threaten 100% tariffs on Canadian items if Ottawa “makes a cope with China.” Carney has careworn Canada isn’t searching for a free commerce settlement with the Asian large.
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