Canada and India Resume High-Level Trade Talks

Canada and India have agreed to revive negotiations for a Comprehensive Economic Partnership Agreement, aiming to double bilateral trade by 2030. The decision comes after a two-year diplomatic freeze and reflects both nations’ interest in expanding economic engagement amid shifting global trade priorities.

Leaders Agree to Restart CEPA Negotiations

The announcement followed a meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 summit in Johannesburg. Both leaders expressed commitment to concluding a high-ambition trade pact designed to push two-way trade to USD 50 billion by 2030. Carney said the renewed dialogue would open substantial opportunities for businesses in both countries.

Context of Diplomatic Reset

Trade talks were suspended in 2023 after tensions escalated over allegations relating to the killing of a Canadian Sikh separatist. Despite the diplomatic rift, bilateral trade grew modestly, although it remained small relative to India’s economic size. Recent high-level interactions, including Modi’s meeting with Carney at the G7 summit earlier this year, helped revive political momentum.

Current Trade Landscape and Cooperation Areas

Bilateral goods and services trade touched roughly C$31 billion in 2024, with Canada maintaining a surplus driven by strong services exports. Both nations reaffirmed their long-standing civil nuclear cooperation and are continuing discussions on long-term uranium supply arrangements. Canada views India as a reliable market within its broader strategy to diversify exports beyond the United States.

Exam Oriented Facts

• India and Canada have revived CEPA talks targeting USD 50 billion trade by 2030.
• Two-way trade in 2024 was around C$31 billion.
• Relations began improving after Modi–Carney talks at the 2025 G7 summit.
• Both sides reaffirmed civil nuclear cooperation, including uranium supply discussions.

Future Outlook and Strategic Engagement

Officials noted that a future trade pact would offer clearer rules, dispute mechanisms and stronger protections for businesses on both sides. Canada is also intensifying negotiations with Mercosur, signalling its broader plan to boost non-U.S. trade flows. For India, renewed engagement with Ottawa adds momentum to its expanding network of economic partnerships across major global markets.