India, Canada Agree to Resume Stalled Talks for New Trade Deal
The Indian government announced that Canada and India have decided to resume halted negotiations for a new trade agreement after talks were suspended due to a diplomatic disagreement two years prior.
Prime Minister Mark Carney held a bilateral conversation with India's Prime Minister Narendra Modi during the G20 summit in Johannesburg, South Africa.
"The leaders consented to initiate discussions on an ambitious Comprehensive Economic Partnership Agreement (CEPA), with the goal of increasing bilateral trade to $50 billion by 2030," stated India's Prime Minister's Office.
"Today, at the G20 Summit, I met with Prime Minister @narendramodi and initiated discussions for a trade agreement that might more than double our trade to over (C) $70 billion," Carney mentioned in a post on X. "India ranks as the fifth largest economy globally, creating significant new prospects for Canadian businesses and workers."
Both parties reiterated their enduring civil nuclear partnership and acknowledged the current talks on enhancing collaboration, including through long-term uranium supply agreements, it stated.
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The resumption of discussions underscores improving relations between the two nations as Carney aims to broaden trade connections beyond the US, its primary trading partner.
Carney has committed to increasing Canada's exports outside the US by twofold within the next ten years.
Canada halted talks for a comprehensive trade agreement in 2023 after tensions escalated when Ottawa accused the Indian government of being involved in the murder of a Canadian Sikh separatist. New Delhi has rejected any participation.
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In spite of the diplomatic conflict, trade between Canada and India has increased, but trade analysts indicate it remains relatively minor compared to the size of India's economy.
In 2024, bilateral trade in goods and services reached approximately C$31 billion ($21.98 billion), predominantly advantageous for Canada due to its C$16 billion in services exports. Conversely, Canada's overall bilateral trade with China was nearly four times larger in 2024.
Relations between Canada and India started to enhance after Modi's discussion with Carney during the G7 summit in June.
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Earlier on Sunday, Carney mentioned that he views India as a dependable trading partner, though he recognized that there might be some "source of friction."
He mentioned that Canada and India share a robust trade connection and expressed interest in enhancing it.