Canada and India Agree to Resume Trade Talks After Two-Year Pause

Canada and India have agreed to resume negotiations on a long-delayed trade deal, signaling an improvement in relations after a diplomatic dispute halted discussions two years ago, the Indian government announced on Sunday.

The decision followed a bilateral meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on the sidelines of the G20 summit in Johannesburg, South Africa.

According to India’s Prime Minister’s Office, both leaders agreed to restart negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), with the goal of doubling bilateral trade to USD 50 billion by 2030.

Carney echoed this sentiment on X, stating that a renewed trade deal could expand total trade to more than C$70 billion. He highlighted India’s status as the world’s fifth-largest economy and emphasized the opportunities this brings for Canadian businesses and workers.

The two countries also reaffirmed their long-standing civil nuclear cooperation and continued discussions on long-term uranium supply arrangements.

The revival of talks marks a thaw in relations after Canada paused negotiations in 2023, following allegations that Indian officials were linked to the killing of a Canadian Sikh separatist—an accusation denied by New Delhi.

Despite tensions, bilateral trade continued to grow, reaching around C$31 billion in 2024, though experts note this remains modest compared to India’s economic scale. Canada’s trade with China, for instance, was nearly four times higher.

Relations began improving after a meeting between Modi and Carney during the G7 summit in June. Carney has set a goal of doubling Canada’s non-US exports within a decade and said he views India as a reliable, though occasionally challenging, trade partner.

He stressed the importance of a formal trade agreement that would provide clear rules, strong protections, and dispute-resolution mechanisms for businesses in both countries.

On the sidelines of the G20 summit, Carney also met Brazilian President Luiz Inácio Lula da Silva, with both leaders agreeing to accelerate negotiations on a Canada-Mercosur free trade agreement.