Canada and India have agreed to resume stalled negotiations for a new trade deal, the Indian government said on Sunday. The announcement followed a bilateral discussion between Canadian Prime Minister Mark Carney and India’s Prime Minister Narendra Modi on the sidelines of the G20 summit in Johannesburg. The deal aims to double bilateral trade to USD 50 billion by 2030.
Carney described the talks as a launch of a Comprehensive Economic Partnership Agreement (CEPA), which could raise trade to more than C$70 billion. Both leaders highlighted new opportunities for Canadian businesses and workers as India emerges as the world’s fifth-largest economy.
Read more: Canada and India restart talks on ambitious trade deal
The discussions also reaffirmed longstanding civil nuclear cooperation and ongoing talks on long-term uranium supply arrangements. Restarting trade negotiations reflects thawing relations between the two countries after a diplomatic row in 2023 halted talks. Canada had accused India of involvement in the killing of a Canadian Sikh separatist, which New Delhi denied.
Bilateral trade has grown despite the diplomatic dispute, reaching about C$31 billion ($21.98 billion) in 2024, primarily benefiting Canada through services exports. Trade experts note the figure remains small relative to India’s economic size, compared with Canada’s trade with China, which is nearly four times larger.
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Carney also used the G20 summit to meet Brazilian President Luiz Inácio Lula da Silva, agreeing to intensify negotiations on a Canada-Mercosur free trade agreement. Analysts see these moves as part of Canada’s broader strategy to diversify exports beyond the U.S. and strengthen global trade partnerships.