Canada and India agree to resume trade talks after two-year freeze
Canada and India have agreed to revive negotiations on a long-delayed trade agreement, marking a significant step toward repairing bilateral ties that deteriorated sharply two years ago.
The announcement came after a meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on the sidelines of the G20 Summit in Johannesburg.
In a statement released Sunday, India’s Prime Minister’s Office said both leaders committed to restarting negotiations on a “high-ambition” Comprehensive Economic Partnership Agreement (CEPA), with a shared goal of doubling bilateral trade to USD 50 billion by 2030.
PM Carney echoed the announcement in a post on X, saying the renewed talks could “more than double” two-way trade to over C$70 billion. “India is the world’s fifth-largest economy, and that means big new opportunities for Canadian workers and businesses,” he said.
The two leaders also reaffirmed their longstanding civil nuclear partnership and noted ongoing discussions to expand cooperation, including the possibility of long-term uranium supply agreements — an area of strategic interest as both nations look to secure cleaner energy options.
The decision to restart talks comes as Canada seeks to diversify its trade relationships beyond the United States, its dominant trading partner. Carney has pledged to double Canada’s non-US exports over the next decade, and closer economic ties with India are seen as a key component of that strategy.
Trade negotiations between the two countries were halted in 2023 after Ottawa accused New Delhi of involvement in the killing of a Canadian Sikh separatist — a claim India vehemently denied. Despite the diplomatic dispute, economic exchanges continued to grow, though analysts note that the current C$31 billion in annual trade remains modest compared to India’s economic size.
In 2024, two-way trade was heavily tilted in Canada’s favour, driven by C$16 billion in services exports. By comparison, Canada’s trade with China that year was nearly four times larger.
Relations began to thaw earlier this year after Modi and Carney held informal discussions on the sidelines of the G7 Summit in June. The decision to formally restart CEPA negotiations signals the most significant diplomatic breakthrough since tensions erupted and could pave the way for broader cooperation in the months ahead.
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