Canada and India Revive Trade Negotiations, Aim for $50 Billion Target by 2030

Johannesburg - In a significant step towards mending strained relations and bolstering economic ties, Canada and India have agreed to restart negotiations for a comprehensive trade deal, setting an ambitious bilateral trade target of $50 billion by 2030. The announcement came after a meeting between Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on the sidelines of the G20 Summit in Johannesburg.

The decision marks a notable shift following a period of diplomatic tension between the two countries. Relations had deteriorated in 2023 after Canada publicly alleged potential Indian government involvement in the killing of a Sikh activist, Hardeep Singh Nijjar, near Vancouver. These allegations, which India has dismissed as baseless, led to a suspension of trade talks and a cooling of diplomatic ties.

Now, both leaders are signaling a desire to move forward and unlock the potential for increased cooperation. "Had a very productive meeting with Prime Minister Mark Carney of Canada," Modi shared on social media, expressing appreciation for the "significant momentum" in bilateral ties since their meeting at the G7 Summit earlier this year. He further stated that both countries agreed to advance relations in trade, investment, technology, innovation, energy, and education.

Carney echoed this sentiment, emphasizing the vast opportunities for Canadian businesses and workers in India, the world's fifth-largest economy. He noted that a trade deal could more than double trade between the two nations, potentially reaching over C$70 billion.

The renewed trade negotiations aim to establish a Comprehensive Economic Partnership Agreement (CEPA). Foreign Affairs Minister Anita Anand told The Canadian Press that the deal would encompass goods, services, investments, agriculture, digital trade, labor mobility, and sustainable development. Negotiations are expected to commence "as soon as possible".

This isn't the first attempt at forging a comprehensive trade agreement between Canada and India. Negotiations began 15 years ago but were later downgraded to focus on specific industries. The current push for a broad CEPA signals a renewed commitment to a deeper and more comprehensive economic partnership.

In addition to trade, both countries are eyeing increased collaboration in other sectors. Modi highlighted the potential for stronger trade and investment linkages, noting the interest of Canadian Pension Funds in Indian companies. Both leaders also agreed to explore deeper cooperation in the defense and space sectors.

The resumption of trade talks and the setting of the $50 billion target are being viewed as positive signs of a thaw in relations. Carney's acceptance of Modi's invitation to visit India in early 2026 further underscores this warming trend.

Canada is seeking to diversify its trade portfolio beyond the United States, its largest trading partner. Strengthening ties with India, a rapidly growing economy, aligns with this objective. Meanwhile, India aims to deepen its engagement with a G7 partner.

While challenges remain, the commitment from both leaders to revitalize trade negotiations and pursue broader cooperation provides a foundation for a stronger and more productive Canada-India relationship.