India and Canada Revive CEPA Talks with Ambitious Trade Targets
Johannesburg - In a significant step towards bolstering bilateral relations, India and Canada have agreed to formally restart negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The announcement came following a meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 summit in Johannesburg.
The decision signifies a renewed commitment to strengthening economic ties between the two nations, especially after relations were strained in 2023 when Ottawa suspended trade talks following allegations related to the assassination of a Sikh activist near Vancouver.
According to Foreign Affairs Minister Anita Anand, the trade deal aims to encompass various sectors, including goods, services, investments, agriculture, digital trade, labor mobility, and sustainable development. Negotiations are expected to commence "as soon as possible". Both leaders expressed a mutual interest in furthering advancements in the use of AI and digital technology.
The ambitious goal is to double two-way trade between the two countries to US$50 billion by 2030. Canada currently stands as India's seventh-largest trade partner. In 2024, the two-way trade totaled $30.9 billion.
Prime Minister Carney has emphasized that despite occasional trade disputes, he views India as a reliable trade partner. He also stated the importance of having a Comprehensive Economic Partnership Agreement with India to facilitate more effective and scalable trade.
The CEPA talks were initially launched 15 years ago, but progress stalled, leading to a downgrade in discussions that focused on specific industries. Efforts to revive the broad trade pact were initiated in March 2022, with both countries expressing interest in an interim agreement or Early Progress Trade Agreement (EPTA) as a transitional step.
Alongside CEPA, India and Canada are also looking to promote and protect bilateral investment, potentially through a Bilateral Investment Agreement.
In addition to trade, deeper cooperation in defense and space sectors is also on the agenda. Furthermore, Canada joined a trilateral agreement with India and Australia on advanced technologies.
Despite previous disagreements and concerns about foreign interference, both countries are focused on securing investments that bolster their economies. They recognize the realignment of the global trading order and the volatility in the geopolitical environment. Both countries agreed to allow diplomats to return to each other's countries in October, following Foreign Affairs Minister Anita Anand's visit to India. India is also Canada's largest source country for immigrants, with nearly 393,000 Indian students in 2024 and more than 1.8 million Canadians of Indian origin.
