India and Canada restart trade pact negotiations, set different targets for 2030

India and Canada have agreed to restart formal negotiations on a Comprehensive Economic Partnership Agreement (CEPA).

The decision came after Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met in Johannesburg during the G20 Leaders’ Summit.

Both sides presented different goals for 2030. India aims to raise bilateral trade to $50 billion, while Canada targets $70 billion.

In 2024, trade in goods and services between the two countries stood at $22.6 billion. According to sources, the gap in targets reflects a stronger belief among Canadian businesses in India’s market potential.

Talks on the trade pact began 15 years ago but were later reduced to a sectoral deal covering only specific industries. The renewed push comes as India and Canada work to repair ties after a two-year diplomatic breakdown.

Modi and Carney met earlier at the G7 summit in June. Their foreign ministers have met three times this year, and Canada’s trade minister visited India this month. The engagement is significant as India-US relations have cooled due to the 50% tariff imposed by the Donald Trump administration. Canada is also dealing with US tariffs.

In late 2023, trade negotiations were halted after then Prime Minister Justin Trudeau accused Indian government agents of involvement in the killing of Khalistan separatist Hardeep Singh Nijjar — an allegation India called “absurd”. Relations began improving after a change of leadership in Ottawa in March.

At their meeting in South Africa, Carney accepted Modi’s invitation to visit India in early 2026.

Indian High Commissioner to Canada Dinesh Patnaik said that both countries are “mature enough to understand” the need for a relationship where issues of public safety can be discussed openly. He added that if evidence presented in court substantiates Canada’s allegations, “then we will take actions ourselves, like we are taking action in the US,” while stressing that India currently has no such evidence.

India’s Ministry of External Affairs said the two leaders have agreed to launch negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA), with the goal of doubling bilateral trade to $50 billion by 2030.

Canada’s government released its own statement. It said the leaders agreed to “formally launch negotiations for an ambitious Comprehensive Economic Partnership Agreement (CEPA) encompassing goods, services, investment, agriculture and agri-food, digital trade, mobility, and sustainable development.” The statement added that they hoped the CEPA would more than double trade to $70 billion by 2030.

The Canadian statement said Modi and Carney welcomed the “positive momentum” since their last meeting at the G7 Summit in June and referred to the new bilateral roadmap announced by their foreign ministers in October. After high commissioners returned in August 2025, both sides agreed to increase diplomatic staffing. “Prime Minister Carney also welcomed the progress being made in the law enforcement dialogue between the two countries,” it added. Carney also accepted Modi’s invitation to visit India.

The MEA statement also highlighted civil nuclear cooperation. “Both sides reaffirmed their longstanding civil nuclear cooperation and noted the ongoing discussions on expanding collaboration, including through long-term uranium supply arrangements.”