India, Canada push for trade pact this year, deepen strategic ties | Today’s news

India and Canada on Tuesday agreed to accelerate efforts to conclude negotiations on the Comprehensive Economic Partnership Agreement (CEPA) in 2026, while expanding cooperation in trade, energy, defence, technology and talent mobility.

The pledge came during a meeting between Prime Minister Narendra Modi and his Canadian counterpart Mark Carney on the sidelines of the G7 summit in Evian, France. After the meeting, Modi wrote on X, “It was a pleasure to meet Prime Minister Carney on the sidelines of the G7 summit in Evian. This is our fourth meeting in less than a year, which indicates our commitment to strong India-Canada ties. We reviewed the full gamut of relations between our nations, especially the area covered since our last meeting.”

Read also | The end of the war brings a tailwind for India’s trade with West Asia

According to a press statement from the Ministry of External Affairs, the two leaders welcomed the positive momentum in bilateral relations and reviewed the progress made since Carney’s visit to India in March. They reaffirmed their commitment to a forward-looking strategic partnership, highlighted the complementarity between the Indian and Canadian economies, and emphasized the importance of resilient and reliable supply chains for global energy and food security.

Economic cooperation

The two representatives reviewed developments in bilateral economic cooperation, including trade arrangements related to liquefied natural gas (LNG), liquefied petroleum gas (LPG) and metallurgical coal. They also expressed satisfaction with the progress of negotiations towards the proposed CEPA and reaffirmed their common goal to conclude a trade agreement this year.

Both sides also welcomed the increasing pace of high-level exchanges. The leaders noted the recent visit of Trade and Industry Minister Piyush Goyal to Canada and said they look forward to a Canadian trade mission to India later this year, led by Canada’s Minister of International trade.

The meeting also focused on strengthening institutional engagement between the two countries. Leaders welcomed the recent meetings of the Joint Committee on Science and Technology and the Consular Dialogue, while looking forward to future dialogues on defence, finance and migration.

Security cooperation

In a major step to expand security cooperation, India and Canada have agreed to start negotiations on the General Security of Information Agreement (GSOIA). They also welcomed recent exchanges between defense institutions, including a visit to India’s National Defense College in Canada.

The two Prime Ministers noted the continued cooperation under the Canada-India Talent and Innovation Strategy, including initiatives to strengthen skills development, innovation partnerships and educational collaboration between institutions in both countries. Modi also expressed support for Canada’s bid to become a Dialogue Partner of the Indian Ocean Association (IORA).

Read also | US-Iran deal eases Hormuz shipping, boosts India’s trade and energy outlook

The leaders announced the establishment of “Raisina Americas”, a new platform designed to deepen dialogue, exchange and cooperation between stakeholders from both countries and the wider region.

Modi thanked Carney for the invitation to visit Canada later this year. Both sides agreed to remain engaged through diplomatic channels to negotiate mutually beneficial dates for the visit.

Melt in ties

The renewed push for a trade pact follows a significant thaw in bilateral relations this year. in May Goyal led India’s largest-ever trade delegation to Canada, where both sides agreed to speed up CEPA negotiations and work towards a deal by the end of 2026.

During the visit, India and Canada also reaffirmed their ambitions to expand substantially bilateral trade and investment, with discussions covering energy, critical minerals, digital technology, agri-food, education and advanced manufacturing. Canadian Trade Minister Maninder Sidhu subsequently announced plans to lead a trade mission to India later this year, underscoring the growing economic momentum between the two countries.

Trade in goods between India and Canada has grown steadily, with two-way trade reaching US$13.6 billion in 2025. Canada’s exports to India reached $3.9 billion, led by vegetables, mineral fuels and oils, and wood pulp, while imports from India were $9.7 billion, driven by precious stones and metals, machinery and pharmaceutical products.

During Goyal’s visit to Canada in May, the two countries reaffirmed their commitment to substantially expand bilateral trade and work to double two-way trade to $70 billion annually by 2030, along with efforts to conclude the proposed CEPA by the end of 2026.

Read also | Sharp declines after the US-Iran pact; markets are awaiting details of the reopening of Hormuz