Canada and India have agreed to restart trade talks aimed at forging a comprehensive economic partnership, according to an announcement by the Indian government. The decision, revealed on Sunday, November 23, 2025, signals a potential thaw in relations between the two countries after a period of strained ties.
The announcement follows a meeting between Canadian Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on the sidelines of the G20 summit in Johannesburg, South Africa. According to a statement from India's Ministry of External Affairs, the leaders have agreed to begin negotiations on a "high-ambition Comprehensive Economic Partnership Agreement". Modi also extended an invitation to Carney to visit India.
This development marks a revival of efforts that began in 2010 to establish a comprehensive trade deal between Canada and India, known as a CEPA. However, those talks were downgraded in fall 2023 to focus on specific industries. The Ottawa suspended trade talks after going public with allegations from the RCMP that the Indian government was behind an assassination near Vancouver of a Sikh activist, followed by coercion and extortion.
Foreign Affairs Minister Anita Anand told The Canadian Press at the G20 summit in Johannesburg that the trade deal would include goods, services, investments, agriculture, digital trade, labour mobility and sustainable development, and that negotiations will begin “as soon as possible”. Anand said Modi and Carney discussed artificial intelligence, including “their mutual interest in furthering advancements in the use of AI and digital technology more generally”.
The Comprehensive Economic Partnership Agreement aims to encompass various sectors, including goods, services, investments, agriculture, digital trade, labor mobility, and sustainable development. Both countries express the desire to conclude the CEPA negotiations swiftly.
The Indian government has set a goal to increase bilateral trade to $50 billion by 2030. In 2024, the two countries exchanged approximately C$31 billion ($22 billion) in goods and services. Prime Minister Carney said a trade deal could double Canada-India trade to $70 billion. Canada is currently India's seventh-largest trade partner for goods and services and ranks among the largest foreign investors in India.
Canadian Trade Minister Maninder Sidhu met with Indian Commerce Minister Piyush Goyal to discuss sectors like critical minerals, clean energy, agriculture, and artificial intelligence. Sidhu's visit marks a major high-level trade engagement since Canada paused negotiations for a broad trade pact in 2023. Relations between the countries began to improve following Prime Minister Narendra Modi's meeting with Carney on the sidelines of the G7 summit in June.
While acknowledging occasional trade disputes, Carney affirmed India as a reliable trade partner. He also emphasized that both countries are maintaining a security dialogue to share information, maintain sovereignty, and rebuild trust.
