G20 Summit: India and Canada Agree to Restart Free Trade Talks, Set to Begin High-Ambition CEPA Negotiations

On Sunday, the prime ministers of India and Canada met during the G20 Leaders' Summit in Johannesburg, South Africa. They agreed to restart talks on a free trade agreement, signalling a positive shift in their bilateral relations. A statement from India's Ministry of External Affairs highlighted their decision to "begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA)."

Earlier tensions between India and Canada had delayed trade discussions, especially after the 2023 killing of Khalistani leader Hardeep Singh Nijjar. Former Prime Minister Justin Trudeau had alleged the involvement of Indian agents in the incident. India, however, had categorically denied these accusations, dismissing them as "absurd and motivated."

Focus on Bilateral Trade and Partnerships

The planned CEPA aims to boost trade between India and Canada, targeting $50 billion by 2030. Both nations reaffirmed their cooperation in civil nuclear energy and discussed securing long-term uranium supply deals. They also welcomed the Australia-Canada-India Technology and Innovation (ACITI) Partnership, which focuses on critical technologies, nuclear energy, AI, and supply chain diversification.

In a post on X, the Prime Minister's Office shared, "PM @narendramodi had a very productive meeting with PM @MarkJCarney of Canada. The two leaders welcomed the strong momentum in bilateral ties and agreed to advance cooperation in trade, investment, technology, innovation, energy, education, defence, and space."

Resuming High-Level Dialogues

Mark Carney, who succeeded Justin Trudeau as Canada's Prime Minister in March, has been keen to mend ties with India. Both nations have appointed new ambassadors this summer to improve diplomatic relations. Carney told reporters that enhancing trade access to India, one of the world's largest economies, is crucial.

During the meeting, the prime ministers discussed collaboration in various sectors such as trade, defence, education, space, science and technology, and energy. Carney also expressed support for India hosting the AI Summit in February 2026. The leaders emphasised the value of frequent high-level exchanges, with Modi inviting Carney to visit India.

Despite past diplomatic challenges, the two countries continue to engage in dialogue between their law enforcement and national security agencies. This reflects a mutual interest in maintaining strong ties and addressing shared concerns.

As both nations work towards a more ambitious economic partnership, the renewed focus on trade and technology cooperation could significantly benefit their economies. The commitment to resolve differences and enhance collaboration in various fields signals a promising future for India-Canada relations.