JOHANNESBURG: Canada and India have agreed to restart stalled negotiations for a new trade deal, the Indian government announced on Sunday, signaling a thaw in bilateral relations after a diplomatic spat two years ago.
Prime Minister Mark Carney met with India’s Prime Minister Narendra Modi on the sidelines of the G20 summit in Johannesburg to discuss a high-ambition Comprehensive Economic Partnership Agreement (CEPA). The agreement aims to double bilateral trade to USD 50 billion by 2030. “PM Modi and I launched negotiations for a trade deal that could more than double our trade to over C$70 billion,” Carney said on social media.
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Both leaders reaffirmed their longstanding civil nuclear cooperation and highlighted ongoing discussions on expanding collaboration, including potential long-term uranium supply arrangements. The restart of talks reflects Canada’s broader push to diversify trade partnerships beyond its largest partner, the United States. Carney has committed to doubling Canada’s non-US exports over the next decade.
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 $70 billion.
India is the world’s fifth largest economy, and that means big new opportunities for Canadian workers and businesses. pic.twitter.com/xjbBIRqcs9
— Mark Carney (@MarkJCarney) November 23, 2025
Negotiations were previously paused in 2023 after Ottawa accused New Delhi of involvement in the killing of a Canadian Sikh separatist, an allegation India denies. Despite the diplomatic row, trade between the two nations continued to grow, reaching approximately C$31 billion ($21.98 billion) in 2024, with Canada enjoying a trade surplus largely driven by services exports. Experts note, however, that trade remains modest relative to India’s economy.
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The meeting follows improved relations after Modi’s earlier engagement with Carney during the G7 summit in June. Carney described India as a reliable trading partner, emphasizing the need for a structured agreement to protect the interests of businesses from both countries and establish clear rules and dispute mechanisms.
In parallel, Carney met with Brazilian President Luiz Inácio Lula da Silva at the G20 summit to intensify negotiations on a Canada-Mercosur free trade agreement, further expanding Canada’s global trade outreach.