Canada wants new trade partners. But markets like India and China come with major obstacles

International Trade Minister Maninder Sidhu says Canada has a accidental to physique caller partnerships arsenic U.S. tariffs proceed to pummel satellite economies. But landing deeper ties with large markets similar the U.K., India and China means overcoming irritants and fraught diplomatic relationships.

"There's an appetite with partners and allies each astir the satellite to bash much with Canada," Sidhu said successful an interrogation with CBC's The House. "There is an opportune model that we person to leap on."

Sidhu told impermanent big Janyce McGregor that occurrence to him is "getting businesses much comfy dealing with overseas markets."

He said Canada "should beryllium screaming astatine the apical of our lungs" astir what it tin connection the world.

Since becoming curate of planetary trade, Sidhu has helped Canada deepen its commercialized relationship with countries similar Ecuador and the United Arab Emirates.

But larger markets similar the United Kingdom, India and China that could play a large relation successful easing Canada's reliance connected the U.S. are overmuch much complicated. Canada has tried to deepen its economical ties with these countries before, but commercialized discussions either fizzled retired oregon diplomatic tensions stymied discussions.

In January 2024, the British authorities walked distant from commercialized negotiations. A large sticking constituent was however overmuch tariff-free entree U.K. producers should person to the Canadian food market.

Sidhu said the U.K. "is an important spouse for Canada" and helium met with his counterpart, British Secretary for Businesses and Trade Jonathan Reynolds, to sermon however to physique up Canada-U.K. relations.

When asked whether Canada's caller instrumentality to support proviso absorption is blocking the U.K. from returning to commercialized discussions, Sidhu said Canada "has ever remained astatine the negotiating table," the Liberal authorities volition "never dismantle proviso management" and that helium wants to absorption connected commercialized "opportunities."

There are signs of progress. In May, British High Commissioner Rob Tinline said the U.K. wants Canada to enactment guardant a measure ratifying its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Weeks later, Ottawa announced plans to do truthful this fall, allowing the British to bask commercialized with Canada nether the presumption of that agreement.

Deepening ties with India, China

During the G7 summit, Carney and Indian Prime Minister Narendra Modi agreed to designate caller precocious commissioners. 

Both countries expelled apical diplomats aft the RCMP accused agents of the Indian authorities of playing a relation successful "widespread violence" successful Canada, including homicides.

When asked whether helium sees a way for commercialized talks to resume betwixt Canada and India, Sidhu said his constituents and Canadians astatine ample are asking for "more connectivity betwixt Canada and India."

Sidhu besides said commercialized and different business-to-business dealings person "been continuing implicit the past fig of years connected an upward trajectory."

He said the authorities is taking a "step-by-step approach," and that restoring diplomats is an important step.

Canada has besides been making commercialized moves with China. Sidhu said the 2 countries person agreed to convene the Joint Economic and Trade Commission "to enactment done immoderate of these issues and problems."

In March, China announced it would use tariffs connected Canadian cultivation and nutrient products arsenic retaliation against levies Ottawa introduced past twelvemonth connected Chinese-made electrical vehicles, alloy and aluminum.

China applied a 100 per cent tariff connected Canadian canola oil, lipid cakes and pea imports, and a 25 per cent work connected Canadian aquatic products and pork.

Sidhu said helium sees an openness to addressing Canada-China commercialized issues "and truthful we'll proceed gathering connected that. But the archetypal portion is to person those conversations being started…

"Diplomacy tin bash wonders and we request to marque definite that we're capable to person those conversations with countries astir the world. And that's precisely what I'll beryllium doing."