India and Canada Relaunch CEPA Negotiations to Reset Diplomatic and Economic Relations

PM Modi engaged with Mark Carney during the G20 Summit in Johannesburg.

New Delhi:

India and Canada have achieved a significant diplomatic breakthrough by agreeing to initiate negotiations on a Comprehensive Economic Partnership Agreement (CEPA), signaling a major reset in bilateral relations after years of tension. This development emerged following discussions between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the Johannesburg G20 Leaders' Summit.

The CEPA negotiations originally commenced in 2010 and saw renewed momentum in 2022 with enhanced collaboration across pharmaceuticals, critical minerals, rare earth elements, tourism, urban infrastructure, renewable energy, and mining sectors. However, Canada suspended these talks in 2023.

According to India's Ministry of External Affairs (MEA) in a statement released Sunday evening, both nations have committed to pursuing an ambitious trade agreement aimed at doubling bilateral trade to $50 billion by 2030. The revitalized engagement also encompasses strengthening long-established civil nuclear cooperation and advancing discussions regarding long-term uranium supply arrangements, representing an area of mutual strategic interest.

This diplomatic warming follows an extended period of strained relations between New Delhi and Ottawa. India has consistently expressed concerns regarding Khalistani extremist networks operating from Canada, which it considers direct threats to national security. Relations deteriorated dramatically in 2023 when former Canadian Prime Minister Justin Trudeau made unsubstantiated allegations against India concerning the death of a Canadian citizen with Khalistani separatist ties. India rejected these claims as politically motivated and unsubstantiated, resulting in reciprocal diplomatic reductions and suspension of trade negotiations.

The change in diplomatic climate began earlier this year through persistent engagement between External Affairs Minister S Jaishankar and his Canadian counterpart Anita Anand. Their multiple meetings established the foundation for confidence-building measures and gradual restoration of normal diplomatic channels. By October 2025, both countries formally announced normalized diplomatic relations, including the reinstatement of High Commissioners in both capitals.

Canadian Prime Minister Mark Carney stated to media on Sunday, "Canada is reengaging pragmatically with global giants India and China. Yesterday, Canada, India and Australia formed a new trilateral partnership on technology and innovation, which will accelerate our cooperation in critical and emerging technologies. The partnership will draw on our strengths and will focus on clean energy, critical minerals and artificial intelligence to unlock more opportunities for Canadian workers and businesses".

The prospective trade agreement is expected to encompass goods, services, investments, agriculture, digital trade, labor mobility, and sustainable development, including mutual interests in advancing AI and digital technology implementation.

The Johannesburg meeting appears to have strengthened this momentum. Beyond CEPA, Prime Ministers Modi and Carney welcomed the Australia-Canada-India Technology and Innovation (ACTI) Partnership designed to enhance trilateral cooperation in critical technologies, artificial intelligence, nuclear energy, and supply chain diversification.

With CEPA negotiations set to commence and high-level exchanges restored, India and Canada now stand positioned to rebuild a partnership previously considered at risk. The upcoming months will determine whether this political reset can translate into lasting economic and strategic benefits for both nations.