JOHANNESBURG — Canada and India are reigniting discussions for a comprehensive trade agreement that began in 2010. Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have agreed to formally initiate negotiations for a Comprehensive Economic Partnership Agreement (CEPA), according to Foreign Affairs Minister Anita Anand.

Anand announced the development at the G20 summit in Johannesburg, stating that the proposed trade deal will encompass various sectors, including goods, services, investments, agriculture, digital trade, labor mobility, and sustainable development. She emphasized that negotiations will commence "as soon as possible."

The two leaders also discussed advancements in artificial intelligence and their shared interest in enhancing the use of AI and digital technology. Although Canada and India began talks for a CEPA 15 years ago, discussions were downgraded to focus on sector-specific agreements until late 2023.

Anand noted, "The leaders are both moving with alacrity to ensure that this CEPA is concluded as soon as possible." In 2023, trade talks were suspended after allegations surfaced from the Royal Canadian Mounted Police (RCMP) claiming that the Indian government was involved in the assassination of a Sikh activist near Vancouver, along with subsequent coercion and extortion.

Despite these tensions, Carney affirmed that both nations are maintaining a security dialogue to share information and rebuild trust. Earlier this year, a federal inquiry identified New Delhi as a significant actor in foreign interference in Canada. Carney stated, "With respect to any forms of foreign interference, we have to remain vigilant — we are vigilant," while also recognizing India as a reliable trade partner despite occasional disputes.

Anand expressed optimism about the future of trade relations, stating that both countries aim to double their two-way trade to $50 billion by 2030. Canada currently ranks as India's seventh-largest trade partner for goods and services and is one of the largest foreign investors in India.

On Saturday, Canada joined a trilateral agreement with India and Australia focused on advanced technologies. Carney is expected to visit India next year, although specific dates have not been confirmed. One potential event is a summit in New Delhi in February centered on AI, where Canada is leading a working group.

Anand highlighted the importance of securing investments to strengthen the Canadian economy, noting that both countries are aware of the shifting global trading landscape and the current geopolitical volatility.

This report was first published on November 23, 2025.