Canada is accelerating efforts to expand trade with India and strengthen economic ties with Europe as Prime Minister Mark Carney pursues a strategy to reduce the country’s dependence on the United States. Ottawa aims to double trade outside the US over the next decade.

Canada is moving to broaden its international trade relationships as uncertainty over US trade policy encourages Ottawa to seek more economic options.

Foreign Minister Anita Anand said Canada wants to conclude a Comprehensive Economic Partnership Agreement with India by the end of 2026. The negotiations are part of a wider strategy under Carney’s government to expand commercial ties with India, the European Union, China and other international partners.

The goal is not to end trade with the United States. Instead, Canada wants to avoid relying too heavily on a single market and create additional opportunities for Canadian businesses.

Canada sets ambitious trade target

Ottawa has established a goal of doubling Canada’s trade with countries other than the United States over the next 10 years.

The target reflects an effort to strengthen economic resilience by expanding the number of markets available to Canadian exporters and businesses.

The United States remains a major trading partner for Canada, making any rapid shift difficult. Nevertheless, the Canadian government is working to develop alternative commercial relationships that could give its economy more flexibility when trade disputes or policy changes create uncertainty.

Anand has described diversification as part of Canada’s effort to protect its economic resilience and sovereignty.

India becomes a major priority

A central part of the strategy is a proposed trade agreement with India.

Canada and India are working toward a Comprehensive Economic Partnership Agreement, with negotiations targeted for completion by the end of 2026. Officials from both countries have been engaging to advance the discussions.

The two governments aim to increase annual bilateral trade to $70 billion by 2030, compared with $30.4 billion in 2025.

Reaching that target would require a substantial expansion of commercial activity between the two countries. A trade agreement could provide a framework for deeper cooperation, although the final outcome will depend on negotiations and the terms ultimately agreed.

The relationship is also developing in strategic sectors. Canada’s Cameco and India signed a uranium supply agreement valued at approximately C$2.6 billion, or US$1.8 billion, earlier in 2026.

Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have also reaffirmed their commitment to advancing the trade negotiations. Modi is expected to visit Canada in December, providing another potential opportunity to discuss bilateral cooperation.

Europe is another part of Ottawa’s plan

Canada is also seeking to strengthen economic cooperation with the European Union, particularly in critical minerals, energy and artificial intelligence.

The relationship already has a foundation in the Comprehensive Economic and Trade Agreement, known as CETA. Ottawa wants to build on those ties and expand cooperation in sectors considered important to future economic growth and supply-chain security.

Canada is also pursuing broader trade relationships in Southeast Asia. The government has said it wants to advance a trade agreement with the Association of Southeast Asian Nations in 2026.

Together, these efforts illustrate a wider strategy: develop more markets for Canadian products, attract investment and reduce the risks associated with relying heavily on one economic partner.

What this means for the United States

Canada’s approach comes amid tensions over US trade policy under President Donald Trump.

Because the Canadian and American economies are closely connected, changes to tariffs and trade arrangements can have consequences for businesses on both sides of the border. Seeking alternative markets gives Ottawa more options, although building new commercial relationships takes time.

India and Europe cannot automatically replace the scale and proximity of the US market. New agreements must be negotiated, businesses need customers and supply chains need to develop before diversification can produce its full economic impact.

For that reason, Canada’s strategy should be understood as an effort to broaden its options rather than an immediate break with the United States.

Can Canada achieve its goal?

The coming years will test whether Canada can turn its diplomatic outreach into measurable growth in trade outside the US.

The proposed India agreement, expanded cooperation with Europe and efforts to reach additional Asian markets are important steps. But negotiations, market access, business investment and changing global conditions will all affect the outcome.

If successful, the strategy could give Canadian businesses access to more customers and help Ottawa manage future trade disruptions. If progress is slower than expected, Canada will likely continue to depend heavily on its established US economic relationship.

The central question is whether Canada can turn its push for trade diversification into a lasting shift in its economic relationships — while maintaining its essential partnership with the United States.

Sources: Reuters reporting on Canada’s trade negotiations and the Canadian Prime Minister’s Office statement on discussions between Mark Carney and Narendra Modi.

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