Carney and Modi agree to relaunch negotiations on comprehensive Canada–India trade deal

Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have agreed to formally begin negotiations on a new Comprehensive Economic Partnership Agreement (CEPA), signaling a significant easing of diplomatic tensions between the two countries.
Carney announced the development Sunday, stating that a renewed trade agreement has the potential to double bilateral trade to approximately $70 billion. He highlighted India’s position as the world’s fifth-largest economy and emphasized the opportunities such an agreement could create for Canadian workers and businesses.
India’s Ministry of External Affairs confirmed the launch of negotiations in a statement released Sunday afternoon and said Modi invited Carney to visit India. According to the Prime Minister’s Office, Carney has accepted the invitation and plans to travel to India in early 2026.
The agreement marks a major step forward in bilateral relations, which deteriorated sharply after Ottawa alleged in 2023 that Indian government agents were involved in the killing of Canadian Sikh activist Hardeep Singh Nijjar — an accusation New Delhi denies.
Carney and Modi met on the sidelines of the G20 summit in Johannesburg, their second face-to-face meeting since Carney took office, following earlier talks at the G7 summit in Canada in June. Officials from both countries say preliminary discussions have been ongoing since that meeting.
India’s High Commissioner to Canada, Dinesh Patnaik, told the media on Sunday that both sides have made progress on several key issues, citing recent ministerial-level engagements in the energy sector. He described the trade discussions as part of broader efforts to rebuild the relationship.
Canada and India initially began negotiating a CEPA 15 years ago, but the process later shifted to narrower sector-based discussions. Ottawa suspended talks in 2023 after publicly linking India to assassination and intimidation activities in Canada.
Questions remain for the Carney government about how it intends to reconcile its push for deeper economic ties with India while the RCMP continues to investigate alleged Indian involvement in homicides, threats and extortion on Canadian soil. Officials say Canadian security agencies remain vigilant as diplomatic engagement resumes.