Canada and India move to restart comprehensive trade talks

Canada and India are taking steps to restart negotiations toward a full trade agreement, marking a renewed push after more than a decade of on-and-off discussions. Prime Minister Mark Carney and Indian Prime Minister Narendra Modi signalled their interest in reviving the effort during meetings around the G20 summit in Johannesburg.

Foreign Affairs Minister Anita Anand told The Canadian Press that both governments want a broad agreement covering major industrial sectors as well as services. The two countries first pursued such a deal in 2010, but talks were scaled back in recent years to focus only on selected industries. Ottawa formally paused discussions in late 2023 after the RCMP alleged that Indian government agents were linked to the killing of a Sikh activist in the Vancouver region, followed by concerns about coercive activity.

Carney said a dedicated security dialogue will be essential to rebuild trust, noting that a federal inquiry has identified India as one of the most active foreign actors attempting to influence Canadian institutions. The federal government has faced pressure from communities in British Columbia and across the Prairies to ensure any renewed engagement addresses interference and safety concerns.

Despite the tensions, Anand said both governments believe they can double bilateral trade by 2030, reaching an estimated value of 50 billion U.S. dollars. Analysts say any forward movement could have significant economic implications for B.C. and Alberta, where businesses rely heavily on trade access to major Indo-Pacific markets.