Canada and India begin talks on a new trade pact as Prime Minister Carney and PM Modi push to boost economic ties despite ongoing security and diplomatic tensions.
Carney and Modi Begin Trade Deal Negotiations, Signalling Diplomatic Thaw
Leaders Commit to Advancing Economic Partnership
Prime Minister Mark Carney and Indian Prime Minister Narendra Modi agreed on Sunday to formally begin negotiations on a new Comprehensive Economic Partnership Agreement, signalling a renewed push to expand bilateral economic ties. Both leaders confirmed the plan after meeting during the G20 summit in Johannesburg.
Agreement Aims to Scale Trade Significantly
Carney said a revitalized trade pact could help double Canada-India trade to an estimated $70 billion, positioning Canada to tap into what he called the “world’s fifth-largest and fastest-growing economy.” India’s Ministry of External Affairs stated the goal is to grow bilateral trade to $50 billion by 2030.
Engagement Strengthens After Months of Tension
The announcement marks one of the clearest signs of warming relations after diplomatic ties froze in 2023, when Ottawa publicly alleged that Indian agents were linked to the killing of Sikh activist Hardeep Singh Nijjar in British Columbia. Both sides had suspended trade discussions amid the fallout.
Leaders Build on Recent High-Level Meetings
Carney and Modi met face to face for the second time since the Canadian prime minister took office, following earlier talks at the G7 summit this summer. India’s High Commissioner to Canada, Dinesh Patnaik, said discussions between the countries have been ongoing since June, particularly in energy, a sector central to India’s growth priorities.
Canada Maintains Security Concerns Amid Progress
Despite the renewed diplomatic push, Carney faces scrutiny over improving relations as Canadian authorities continue investigating alleged Indian interference. CSIS Director Dan Rogers said the agency remains “very vigilant” about potential threats. Patnaik emphasized that India does not ask Canada to ignore security issues, saying both nations must keep citizens safe.
Carney Highlights Need for Balance
Carney told reporters he views India as a reliable economic partner but stressed that Canada will continue safeguarding against foreign interference. He said cooperation with Indian security and law-enforcement officials is ongoing and essential to maintaining public safety.
Experts Point to Global Forces Driving Cooperation
Sanjay Ruparelia, a politics professor at Toronto Metropolitan University, said the thaw reflects broader geopolitical shifts, including trade turbulence triggered by former U.S. president Donald Trump. He argued that the global realignment has prompted many countries to reassess their partnerships.
Sikh Referendum Adds Complexity to Diplomatic Reset
As the leaders met, Sikhs for Justice held a referendum in Ottawa advocating for an independent Sikh homeland, an event India considers an attack on its sovereignty. Inderjeet Singh Gosal, who now leads the Canadian chapter, criticized the government’s move to restore diplomatic ties, arguing that threats against Sikh activists persist.
Ottawa Affirms Domestic Security as Priority
Foreign Affairs Minister Anita Anand said Carney’s meeting with Modi had been planned well in advance and was not intended to send a message regarding the referendum. She stressed that public safety, law-enforcement cooperation and national security remain at the forefront of Canada’s diplomatic approach.
