India and Canada have reopened negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA). The move signals a major diplomatic reset after several tense years. Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met during the G20 Summit in Johannesburg and agreed to restart trade discussions.
CEPA talks began in 2010. They gained momentum again in 2022 with cooperation in pharmaceuticals, tourism, renewable energy and rare earth minerals. However, Canada paused negotiations in 2023 due to rising diplomatic tensions. Now, both nations aim to double bilateral trade to USD 50 billion by 2030. They also want to strengthen civil nuclear cooperation and discuss long-term uranium supply deals.
Relations deteriorated sharply last year. Former Canadian Prime Minister Justin Trudeau accused India of involvement in the killing of a Canadian citizen linked to Khalistani separatism. India rejected the allegation and diplomatic channels slowed. Over time, continued engagement between External Affairs Minister S. Jaishankar and Canadian Foreign Minister Anita Anand helped rebuild trust.
Furthermore, Modi and Carney welcomed the new Australia-Canada-India Technology and Innovation Partnership. The initiative will promote cooperation in clean energy, artificial intelligence, critical minerals and advanced technology. The next few months will show whether this renewed political momentum delivers real economic and strategic gains.
