India and Canada Leaders Discuss Free Trade Agreement at G20 Summit in Johannesburg

During the G20 Leaders' Summit in Johannesburg, South Africa, on Sunday, the prime ministers of India and Canada met to discuss restarting free trade agreement talks. This meeting marks a positive turn in their bilateral relations. India's Ministry of External Affairs announced their decision to "begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement (CEPA)." This agreement aims to strengthen economic ties between the two countries.

Earlier tensions had stalled trade discussions between India and Canada, particularly after the 2023 killing of Khalistani leader Hardeep Singh Nijjar. Former Prime Minister Justin Trudeau had accused Indian agents of involvement, which India firmly denied as "absurd and motivated." Despite these challenges, both nations are now focusing on improving their relationship through trade and partnerships.

The proposed CEPA aims to enhance trade between India and Canada, with a target of reaching $50 billion by 2030. Both countries have reaffirmed their cooperation in civil nuclear energy and are exploring long-term uranium supply agreements. Additionally, they have welcomed the Australia-Canada-India Technology and Innovation (ACITI) Partnership, which focuses on critical technologies, nuclear energy, AI, and supply chain diversification.

In a post on X, the Prime Minister's Office shared that "PM @narendramodi had a very productive meeting with PM @MarkJCarney of Canada. The two leaders welcomed the strong momentum in bilateral ties and agreed to advance cooperation in trade, investment, technology, innovation, energy, education, defence, and space."

Mark Carney became Canada's Prime Minister in March after succeeding Justin Trudeau. He has shown interest in mending ties with India. Both countries have appointed new ambassadors this summer to improve diplomatic relations. Carney emphasised that enhancing trade access to India is crucial due to its status as one of the world's largest economies.

During their meeting, the prime ministers discussed collaboration across various sectors such as trade, defence, education, space, science and technology, and energy. Carney also expressed support for India hosting the AI Summit in February 2026. The leaders stressed the importance of frequent high-level exchanges, with Modi inviting Carney to visit India.

Despite past diplomatic challenges, both countries continue engaging in dialogue between their law enforcement and national security agencies. This reflects a mutual interest in maintaining strong ties and addressing shared concerns. As both nations work towards a more ambitious economic partnership, renewed focus on trade and technology cooperation could significantly benefit their economies.

The commitment to resolving differences and enhancing collaboration across various fields signals a promising future for India-Canada relations. With ongoing efforts to strengthen ties through economic partnerships and technological advancements, both countries are poised for mutual growth.