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New Delhi: India and Canada, after years of thaw in bilateral ties, are going to launch negotiations on a much-awaited Comprehensive Economic Partnership Agreement (CEPA). Notably, Prime Minister Narendra Modi and Canadian counterpart Mark Carney met on the sidelines of the G20 Leaders' Summit in Johannesburg on Sunday, and the announcement comes following the meeting. It is a significant step forward in the relationship between the two nations after a period of turbulence.
The negotiations between India and Canada started in 2010. It strengthened in 2022 as the two nations agreed to enhance cooperation in areas such as pharmaceuticals, critical and rare earth minerals, urban infrastructure, renewable energy, mining, and tourism. However, Canada put the brakes on the talks in 2023, and this latest development shows that the relationship between the two countries is on the road to recovery.
Ministry of External Affairs (MEA) has issued a statement affirming that both sides would pursue an ambitious trade pact to take bilateral trade to $50 billion by 2030. The agreement will also cover increasing civil nuclear cooperation and advancing talks on long-term uranium supply arrangements.
The relation between India and Canada has been strained in recent years over the Khalistani issue, with extremists operating from Canadian soil. It nosedived especially in 2023 due to former Canadian Prime Minister Justin Trudeau, who accused India of killing a Canadian citizen linked to Khalistani separatism. However, relations improved after Canadian Prime Minister Mark Carney came to office, and both nations officially announced the normalisation of bilateral ties in October 2025.
Notably, PM Modi has unveiled a new trilateral framework for technology and innovation after meeting his Australian and Canadian counterparts on the sidelines of the G-20 Leaders’ Summit in Johannesburg. He said, “We are delighted to announce an Australia-Canada-India Technology and Innovation (ACITI) Partnership."
