India And Canada Restart Talks, Seeking To Double Trade

Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to resume discussions on a bilateral free trade deal, the latest sign of warming relations between the two countries.

The talks were announced after Modi and Carney met on the sidelines of the Group of 20 summit in South Africa. The leaders decided to “begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement,” according to a statement from India’s Ministry of External Affairs.

Carney also accepted Modi’s invitation to visit India early next year.

The goal is for bilateral trade to reach $50 billion by 2030, the Indian government said. The two countries exchanged about C$31 billion ($22 billion) in goods and services last year, according to Canadian official data.

Canada and India have sought a trade deal before, but diplomatic relations ruptured in 2023 after then-Prime Minister Justin Trudeau and other officials said there was evidence the Indian government orchestrated the killing of a Sikh activist in the Vancouver region. Canadian police have laid criminal charges in the case, with a trial pending.

Indian officials have long complained that Canada doesn’t do enough to crack down on active Sikh separatist groups that want to disrupt Indian politics.

Since taking over from Trudeau in March, Carney has sought to restore normal relations. Both governments named new ambassadors this summer.

Speaking to reporters just ahead of his meeting with Modi, Carney said it was important to get better trade access to “one of the world’s largest and fastest-growing economies.”

The two countries’ law enforcement and national security agencies are also continuing to have conversations, he said.

Canada, which sells the vast majority of its exports to the US, is trying to diversify markets because of protectionism from Washington. Carney has set an ambitious goal of doubling non-US exports by 2035.