Canada and India have agreed to restart talks on a new trade deal, after negotiations were paused two years ago because of a diplomatic disagreement, Reuters reported. The announcement came on Sunday from the Indian government.
Canada’s Prime Minister Mark Carney met with India’s Prime Minister Narendra Modi for talks on the sidelines of the G20 summit in Johannesburg, South Africa. PM Modi also invited Carney to visit India, the ministry added.
Canada and India restart trade talks
According to a statement from India’s Prime Minister’s Office, the leaders agreed to “begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA).” The Indian government said the goal of the new trade deal is for trade between India and Canada to reach $50 billion by 2030. Last year, the two countries exchanged around C$31 billion (about $22 billion) in goods and services, according to Canadian data.
On social media, Carney said, “India is the world’s fifth-largest economy, and that means big new opportunities for Canadian workers and businesses.” He added that the trade deal could more than double trade to over C$70 billion.
The two countries also discussed their civil nuclear cooperation and long-term collaboration, including uranium supply agreements. The restart of talks shows improving relations, as Carney looks to expand Canada’s trade beyond the US, its largest trading partner. Carney has also promised to double Canada’s non-US exports over the next ten years.
India-Canada past tensions
Negotiations between the two countries were paused in 2023 after Canada accused India of involvement in the killing of a Canadian Sikh separatist. India denied the allegations. Despite the diplomatic row, trade has continued to grow, though it remains small compared to the size of India’s economy.
In 2024, two-way trade in goods and services reached about C$31 billion ($21.98 billion), mostly in Canada’s favour due to C$16 billion in services exports. By comparison, Canada’s trade with China was nearly four times larger in the same year.
Since becoming Prime Minister in March, Mark Carney has worked to restore normal relations between the two countries. Both India and Canada appointed new ambassadors this summer.
Speaking to reporters before meeting PM Modi, Carney said it was important for Canada to get better access to “one of the world’s largest and fastest-growing economies.” He also mentioned that the two countries continue to talk through their law enforcement and national security agencies. “What we’re looking to do is to put that (commercial relationship) on a sound footing through a potential trade agreement between the two countries, which gives protections to our businesses, protections to Indian businesses, a clear set of rules, dispute mechanisms, and others, and build on those opportunities.”
