In a major breakthrough, India and Canada have agreed to restart negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), signaling a fresh reset in bilateral ties after several rocky years.
The announcement came after Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney on the sidelines of the recent G20 Leaders’ Summit in Johannesburg. The CEPA talks, originally launched in 2010, saw renewed momentum in 2022 across priority sectors such as pharmaceuticals, critical and rare earth minerals, tourism, renewable energy, mining and urban infrastructure.
According to a statement from India’s Ministry of External Affairs (MEA), both nations have now committed to pursuing an ‘ambitious, future-ready‘ trade agreement aimed at doubling bilateral trade to USD 50 billion by 2030. The renewed dialogue will also strengthen long-standing civil nuclear cooperation, particularly through progress on long-term uranium supply—an area of strategic importance for both sides.
This diplomatic ease follows years of friction between New Delhi and Ottawa. India has repeatedly raised concerns about the presence of Khalistani extremist elements operating from Canadian soil, which it views as a threat to its national security.
WHY THE FRICTION?
Relations hit a historic low in 2023 after former Canadian Prime Minister Justin Trudeau levelled allegations against India regarding the killing of a Canadian national linked to separatist activities. India strongly rejected the claims as baseless and politically motivated, leading to a tit-for-tat diplomatic downsizing and a freeze in trade talks.
The shift toward reconciliation began earlier this year through sustained engagement between External Affairs Minister S. Jaishankar and his Canadian counterpart Anita Anand. Multiple rounds of discussions helped rebuild confidence and gradually reopen official communication channels.
WORK AHEAD
As part of its broader strategic outreach, Canada is also reengaging with major Indo-Pacific partners, including India and China. Ottawa recently joined India and Australia in a new trilateral partnership centred on technology and innovation, focusing on clean energy, artificial intelligence and critical minerals – sectors expected to feature prominently in the CEPA framework.
The upcoming CEPA negotiations are likely to cover goods, services, investment protection, agriculture, digital trade, labour mobility and sustainable development, reflecting the shared interest in expanding AI and digital-driven economic growth.
HOPE FOR A BRIGHT FUTURE
With high-level political engagement restored and trade talks officially back on track, India and Canada appear positioned to rebuild a partnership once thought to be at risk of collapse. The upcoming months will determine whether this renewed political goodwill can translate into meaningful economic and strategic gains for both countries.
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