Canada and India resume trade talks after 2-year hiatus
What's the story
Canada and India have agreed to resume their stalled trade negotiations. The decision comes after a two-year hiatus due to diplomatic tensions. Canadian Prime Minister Mark Carney met India's PM Narendra Modi at the G20 summit in Johannesburg, South Africa, where they agreed to start discussions on a Comprehensive Economic Partnership Agreement (CEPA).
Trade target
CEPA aims to double bilateral trade by 2030
The CEPA aims to double the bilateral trade between Canada and India to $50 billion by 2030. Carney announced the launch of negotiations on X, saying, "Prime Minister Modi and I met at the G20 Summit today, and launched negotiations for a trade deal that could double our trade to approximately (C) $70 billion." He added that "India's status as the world's fifth-largest economy presents significant opportunities for Canadian workers and businesses."
Nuclear collaboration
Canada and India reaffirm civil nuclear cooperation
The two countries also reaffirmed their long-standing civil nuclear cooperation and ongoing discussions to expand collaboration through long-term uranium supply arrangements. The resumption of trade talks marks a significant step in improving relations between Canada and India, as Carney seeks to strengthen trade ties beyond its largest trading partner, the US.
Trade growth
Trade between Canada and India has grown despite tensions
Despite the diplomatic spat, trade between Canada and India has increased. However, experts believe it is still small compared to India's economy. In 2024, two-way goods and services trade reached some C$31 billion (nearly $22 billion), mainly due to Canada's C$16 billion in services exports. This is significantly lower than Canada's total bilateral trade with China which was almost four times bigger in 2024.
Partnership prospects
Carney considers India a reliable trading partner
Carney has pledged to double Canada's non-US exports over the next decade. He regards India as a trustworthy trading partner, even if there may be some "source of friction." He said Canada and India have a strong commercial relationship that he would like to expand further through a potential trade agreement between the two countries.