Canada is hitting a Trade Negotiations Reset

Since his election, Prime Minister Carney has made trade diversification, in the face of U.S. tariffs and protectionism, a key focus.

Having spent much of my career working on trade negotiations for Canada I can imagine just how busy my former colleagues will be delivering on this agenda.

Here is what has been announced recently…

For years, Canada’s negotiations with major partners like India, ASEAN, and Mercosur had languished. It would appear that all partners concerned are now prepared to advance these negotiations:

India

At the G20 meeting recently, Canada and India agreed to restart talks on a Comprehensive Economic Partnership Agreement (CEPA). The ambition is bold: doubling bilateral trade to $70 billion by 2030. See following links:

• Prime Minister Carney meets with Prime Minister of India Narendra Modi | Prime Minister of Canada and
• Carney, Modi agree to launch negotiations on new Canada-India trade deal

Additionally, India and Canada (joined by Australia) have agreed to enter into a new trilateral technology and innovation partnership: the Australia-Canada-India Technology and Innovation (ACITI) Partnership.

• See Joint statement by the Government of Canada, the Government of Australia, and the Government of India

ASEAN

Southeast Asia’s economies are among the most dynamic in the world. Canada has re‑engaged with ASEAN partners, including finalizing a Free Trade Agreement with Indonesia and launching exploratory talks toward Free Trade Agreements with the Philippines and Malaysia.

• Prime Minister Carney advances new trade, economic, and security partnerships with ASEAN nations
• Prime Minister Carney announces new trade agreement with Indonesia – Canada’s first-ever bilateral trade agreement with an ASEAN country

Mercosur

Ottawa has signaled renewed interest in advancing talks with Mercosur (Brazil, Argentina, Uruguay, Paraguay), focusing on agriculture, energy, and sustainable development.

• Joint statement to advance resumption of Canada-Mercosur Free Trade Agreement negotiations and reaffirm commitment to the global trading system

Canada is also seeking out new partners.

United Arab Emirates

In November 2025, Canada signed a Foreign Investment Promotion and Protection Agreement (FIPA) and opened negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with the UAE. The deal is expected to double bilateral trade and unlock billions in investment, including a landmark $70 billion commitment from UAE sovereign wealth funds.

• Prime Minister Carney meets with President of the United Arab Emirates His Highness Sheikh Mohamed bin Zayed Al Nahyan | Prime Minister of Canada
• Prime Minister Mark Carney of Canada and His Highness President Sheikh Mohamed bin Zayed Al Nahyan of the United Arab Emirates commit to deepening bilateral engagement and economic cooperation | Prime Minister of Canada

South Africa

At the recent G-20 meeting, PM Carney indicated that Canada has opened discussions with South Africa for a new Foreign Investment Protection Agreement. An agreement on nuclear cooperation was announced and the PM made a number of other commercial announcements.

• Prime Minister Carney strengthens trade and investment partnerships at the G20 Leaders’ Summit | Prime Minister of Canada

But lurking in the background of all this is the big one…the mandated review of the USMCA agreement. This will take all of the resources of the Canadian trade team.