Ever since Donald Trump slapped tariffs on Canadian goods on Feb. 1, 2025, Prime Minister Mark Carney has been encouraging trade with nations other than the United States.
The former central banker turned politician wants to double non-US exports over the next decade.
Towards that goal, Carney met with Indian Prime Minister Narendra Modi in Delhi on Monday as part of a four-day trip to deepen trade and diplomatic ties.
The centerpiece was a deal between the Indian government and Saskatchewan-based uranium producer Cameco (TSX:CCO) to supply nearly 22 million pounds of uranium for nuclear energy generation between 2027 and 2035.
Also, British Columbia coal producer Elk Valley Resources — majority-owned by Glencore (LSE:GLEN) — will sell 1.2 million tonnes of coal to India worth hundreds of millions of dollars. (CBC News)
As reported by the National Post newspaper,
Emerging from a set of meetings with India Prime Minister Narendra Modi earlier in the day, Carney announced that a new $2.6-billion agreement had been struck between India and Saskatchewan that will see the Prairie province supply it with uranium, which India needs for nuclear power generation.
The 10-year deal, set to begin in 2027, is part of what the Prime Minister’s Office calls a new “strategic energy partnership,” which was one of the outcomes expected out of Canada’s renewed interest in working with India.
The uranium contract with Saskatoon-based Cameco was one of the 10 commercial deals, some of which were years and months old, that Carney’s office said totalled around of $5.5 billion that he touted as signs of a deepened relationship.
Many of them have to do with Canadian companies expanding into India and vice-versa.
The two leaders also announced plans for a new free-trade deal, where the goal is to double two-way trade to $70 billion over the next four years. Carney has appointed a chief negotiator and said he wants to see the agreement happen by the end of the year.
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To that end, Carney’s office outlined how Canada and India signed five memorandums of understanding to commit to working towards deeper collaborations, with at least two dealing specifically with the areas of critical minerals and “diversifying supply chains.”
Carney has faced criticism at home for courting the Indian government, including inviting Modi to the G7 leaders’ summit in Alberta last year. During Carney’s trip to Delhi, Modi accepted an invitation to visit Canada. The Prime Minister’s Office reports that Canada and India have interacted more this year than in any of the last 20 years.
The diplomatic U-turn is welcome news to the Canadian business community, which likes the certainty of trade agreements.
Relations under former Prime Minister Justin Trudeau plummeted after he accused the Indian government of orchestrating violent crimes in Canada such as the killing of a prominent Sikh activist in 2023.
Some Indian diplomats were expelled from Canada, but India has denied any involvement in his death.
The Royal Canadian Mounted Police subsequently alleged India was behind incidents of extortion, mainly in BC, Alberta and Ontario.
Along with uranium and coal, Carney also touted current and upcoming LNG projects in British Columbia that could help meet India’s expected doubling of population by 2040.
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“Canada is well-positioned to contribute, as a reliable supplier of the world’s lowest-carbon, responsibly produced LNG (liquefied natural gas) from our West Coast,” he said in his remarks, via CTV News.
The trade news on India came the same day that the Canadian government announced it has secured 30 new critical mineral partnerships, unlocking $12.1 billion in mining project capital.
Made at the 2026 Prospectors & Developers Association of Canada (PDAC) annual convention in Toronto, the announcement is the second round of partnerships and investments under the Critical Minerals Production Alliance. The first round was announced in October 2025.
The Canadian Press reported that Deals include up to $7 million to Greenland Resources' Malmbjerg project in Greenland, $9.1 million to Cyclic Materials Inc.'s rare earths elements recycling centre in Kingston, Ont. and $16.7 million for First Phosphate's Bégin-Lamarche demonstration and feasibility project in Saguenay–Lac-Saint-Jean, Que.
By Andrew Topf for Oilprice.com
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