Canada and Pakistan have formalised an understanding to boost bilateral trade and investment ties, with a renewed focus on facilitating the export of Canadian canola to Pakistan.

The agreement, announced through a joint statement on Monday, marks a significant development in Ottawa’s strategy to diversify its trade partnerships amid rising global protectionism and tariff disputes.

The decision follows Canada’s ongoing trade realignment after China imposed preliminary anti-dumping duties on Canadian canola imports in August 2025.

The move was seen as retaliatory, following Canada’s earlier imposition of a 100 per cent tariff on electric vehicles imported from China. With these developments, Pakistan has emerged as a promising new market for Canadian agricultural exports, offering economic sustainability for Canada’s canola producers.

According to the statement, Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar held a detailed phone discussion with Canada’s Foreign Minister Anita Anand on 30 October 2025.

The two leaders reaffirmed the strength of the Pakistan–Canada partnership and emphasised their shared commitment to expanding economic, trade, and energy cooperation. They agreed to facilitate the export of Canadian canola to Pakistan, recognising the strong potential for growth in Pakistan’s agricultural and processing sectors.

Both governments highlighted the completion of the first round of formal negotiations on a Foreign Investment Promotion and Protection Agreement (FIPPA). The talks were co-led by Pakistan’s Minister for Investment Qaiser Ahmed Sheikh and Canada’s Minister of International Trade Maninder Sidhu. The FIPPA aims to ensure a transparent and predictable framework for investors, encouraging greater participation by Canadian firms in Pakistan’s evolving sectors.

The collaborative agenda also extends beyond trade. Islamabad and Ottawa will explore new areas of cooperation, particularly in clean energy and critical mineral development—a priority for both governments.

Pakistan has embarked on ambitious mineral exploration and hydropower expansion initiatives, areas where Canadian firms already possess advanced expertise and sustainable technologies. The joint statement underscored the need for stable, long-term partnerships to drive these strategic goals.

Both ministers expressed optimism ahead of the upcoming sixth round of bilateral consultations between the two countries.

The forthcoming session is expected to serve as a high-level platform to strengthen government-to-government engagement, deepen private sector participation, and open new channels of strategic collaboration. It also signifies a broad convergence on policies related to economic growth, sustainable development, and regional stability.

In her official post on the social media platform X, Foreign Minister Anita Anand reiterated her commitment to deepening Canada’s trade and investment footprint in South Asia. She confirmed that Pakistan had lifted previous restrictions on canola imports and that regulatory permissions were being fast-tracked to allow early shipments to proceed.

“This decision re-establishes a major market for Canadian canola producers,” Anand wrote, also revealing that import orders had already been placed by Pakistani buyers.

Canadian officials praised the renewed partnership. Member of Parliament Rob Oliphant described the trade accord as a pragmatic response to shifting global market dynamics, reflecting Canada’s drive to diversify its exports beyond traditional partners. Another MP, Shafqat Ali, welcomed the development as a step towards broader engagement across trade, agriculture, and energy cooperation.

The Pakistan Foreign Office later confirmed that both leaders appreciated the recent progress in diplomatic and commercial talks. They reaffirmed their shared aspiration to build an inclusive economic relationship focused on mutual benefit, sustainability, and long-term market stability.

By revitalising canola exports and advancing investment dialogues, Canada and Pakistan have signalled the beginning of a new phase in their bilateral relations—anchored in diversification, resource cooperation, and forward-looking economic goals.

Based On ANI Report