Toronto: The Canadian government has said that a comprehensive trade deal with India could serve as a “powerful economic anchor” between the two countries.
The decision to launch negotiations towards a comprehensive economic partnership agreement (CEPA) was announced following a bilateral meeting between Indian Prime Minister Narendra Modi and his Canadian counterpart Mark Carney on the margins of the G20 Leaders’ Summit in Johannesburg on Sunday.
A readout of the meeting issued by the Canadian prime minister’s office on Sunday said, “The leaders expressed confidence that the CEPA will serve as a powerful economic anchor and help more than double two-way trade to 70 billion Canadian dollars by 2030.”
It also said that Carney has accepted Modi’s invitation to visit India in “early 2026”.
The two countries also agreed to “enhance diplomatic staffing levels to meet growing consular demands and to strengthen people-to-people linkages, including through reciprocal knowledge transfer.”
Carney also welcomed the progress being made in the law enforcement dialogue.
In a post on X prior to leaving Johannesburg for Ottawa, Carney said, “India is the world’s fifth largest economy, and that means big new opportunities for Canadian workers and businesses.”
In a post on X following the bilateral meeting, Modi said, “Had a very productive meeting with Prime Minister Mark Carney of Canada. We appreciated the significant momentum in our bilateral ties since our earlier meeting held during the G7 Summit hosted by Canada.”
{{/usCountry}}In a post on X following the bilateral meeting, Modi said, “Had a very productive meeting with Prime Minister Mark Carney of Canada. We appreciated the significant momentum in our bilateral ties since our earlier meeting held during the G7 Summit hosted by Canada.”
{{/usCountry}}He added, “We agreed to further advance our relations in the coming months, particularly in trade, investment, technology and innovation, energy and education.”
The Canadian readout also mentioned the “positive momentum in bilateral relations” after the two PMs had their breakthrough meeting on the margins of the G7 Leaders’ Summit in Kananaskis in June. It added that the PMs agreed on the importance of regular reciprocal high-level visits, including by ministers and members of the business community.
Reacting to the outcomes of the bilateral, Vina Nadjibulla, vice-president, research and strategy with the Asia-Pacific Foundation of Canada, said, “Today’s PMs meeting is the clearest sign yet that the Canada–India reset is not only holding — it is accelerating and deepening.” She described the development as “remarkable” and something that “would have been hard to imagine” when she was last in New Delhi in February this year.
“We welcome the restart of trade talks and the opportunity to take a new more ambitious approach to the relationship, including through enhanced energy cooperation,” Goldy Hyder, president and CEO of the Business Council of Canada said. A BCC-led trade delegation is expected to accompany Carney on his trip to India in the first quarter of next year.
Canada and India first entered into CEPA talks in 2010 but those were scrapped once Justin Trudeau became Prime Minister in 2015. Fresh negotiations commenced but did not culminate in a deal before the two countries decided to opt for negotiations towards and Early Progress Trade Agreement (EPTA). Those talks were “paused” by Ottawa in August 2023 just days before Trudeau stated in the House of Commons on September 18 that year that there were “credible allegations” of a potential link between Indian agents and the killing of pro-Khalistan figure Hardeep Singh Nijjar in Surrey, British Columbia, three months earlier. India described those accusations as “absurd” and “motivated” and ties cratered.
A reset was signalled when Carney replaced Trudeau as PM in March this year and it appears to have turned into a renewal of the relationship. “The focus now has to be on implementation and make sure that these high-level political commitments are turned into reality and tangible benefits for the economies of both countries,” Nadjibulla said.