Blitz Bureau
NEW DELHI:Canada and India have agreed to restart stalled talks for a new trade deal, the Indian government said on November 23, after discussions between the two countries paused following a diplomatic spat two years ago.
Prime Minister Mark Carney met with India’s Prime Minister Narendra Modi for a bilateral discussion on the sidelines of the G20 summit in Johannesburg, South Africa, said a media report.
“The leaders agreed to begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), aimed at doubling bilateral trade to USD 50 billion by 2030,” the statement from India’s Prime Minister’s Office said. “Prime Minister @narendramodi and I met at the G20 Summit today, and launched negotiations for a trade deal that could more than double our trade to more than (C) US$70 billion,” Carney said in a post on X. “India is the world’s fifth largest economy, and that means big new opportunities for Canadian workers and businesses.”
Both sides reaffirmed their longstanding civil nuclear cooperation and noted the ongoing discussions on expanding collaboration, including through long-term uranium supply arrangements, it added.
The restart of talks highlights thawing relations between the two countries as Carney pushes to expand trade ties beyond the US, its biggest trading partner. Carney has vowed to double Canada’s non-US exports over the next decade. Canada paused negotiations for a broad trade pact in 2023 after relations soured when Ottawa accused the Indian government of involvement in the killing of a Canadian Sikh separatist. New Delhi has denied involvement.
Despite the diplomatic row, trade between Canada and India has grown but trade experts say it is quite small relative to the size of India’s economy. Two-way goods and services trade touched about C$31 billion (US$21.98 billion) in 2024, largely in Canada’s favor due to its C$16 billion in services exports. In contrast, Canada’s total bilateral trade with China was almost four times bigger in 2024.
Relations between Canada and India began to improve following Modi’s meeting with Carney on the sidelines of the G7 summit in June.
