- By Supratik Das
- Mon, 24 Nov 2025 08:50 AM (IST)
- Source:JND
India Canada Trade deal:In a major diplomatic breakthrough, India and Canada on Sunday agreed to restart negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), marking a decisive shift after years of tension between the two countries.
The announcement follows the meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Leaders’ Summit in Johannesburg.
Talks Resume After Two-Year Freeze
CEPA negotiations, initiated in 2010 and briefly revived in 2022 after a nearly five-year delay, were called off by Canada earlier in 2023 amid strained relations. Sunday's decision indicates a clear intent on both sides to rebuild trust and forge ahead on areas of common economic and strategic interest.
According to the Ministry of External Affairs (MEA), both nations have now committed to pursuing the long-pending trade pact to double bilateral trade to USD 50 billion by 2030. India currently enjoys close to USD 30 billion in trade with Canada across goods and services.
Civil Nuclear Cooperation Back In Focus
The leaders reaffirmed their longstanding civil nuclear partnership and expressed interest in expanding cooperation, especially through long-term uranium supply arrangements—an area that has been a cornerstone of India-Canada ties since the early 2010s.
Carney, speaking earlier on Sunday, described India as a “reliable and essential partner”, adding that the renewed push for a trade agreement would provide clear rules and stronger protections for businesses on both sides.
Relations between New Delhi and Ottawa had deteriorated sharply after former Canadian Prime Minister Justin Trudeau accused India of involvement in the killing of a Canadian citizen linked to Khalistani extremism, an allegation India rejected as baseless and politically motivated. Both countries expelled diplomats, and trade negotiations were suspended.
The thaw began earlier this year through sustained engagement between External Affairs Minister S Jaishankar and Canada’s Foreign Minister Anita Anand, culminating in the formal normalisation of diplomatic ties in October 2025.
ACTI Partnership Adds Strategic Depth
Modi and Carney also welcomed the newly launched Australia-Canada-India Technology and Innovation (ACTI) Partnership. The trilateral initiative aims to strengthen cooperation in critical technologies, artificial intelligence, nuclear energy, critical minerals and supply-chain diversification. Carney said the partnership would “unlock more opportunities for Canadian and Indian workers, researchers and businesses”.
Prime Minister Modi noted that Canadian Pension Funds have shown growing interest in Indian companies, adding that both leaders agreed to deepen cooperation in defence, space, energy, and education. The MEA said Carney expressed support for India’s upcoming Global AI Summit in February 2026. Modi also invited the Canadian Prime Minister to visit India soon.
Now that the CEPA talks are back on the table, both countries face the challenge of converting political goodwill into concrete deliverables. A stronger partnership with Canada for India presents an opportunity in the form of access to critical minerals, advanced technologies, and long-term energy supplies.
With inputs from agencies.