Prime Minister Mark Carney and Indian Prime Minister Narendra Modi have agreed to initiate discussions for a new trade agreement termed Comprehensive Economic Partnership Agreement.
Carney, in a social media update posted on Sunday, mentioned that the trade deal could potentially boost Canada-India trade to $70 billion.
Highlighting India’s status as the world’s fifth-largest economy, Carney expressed optimism about the considerable opportunities it presents for Canadian workers and businesses.
A press release from India’s Ministry of External Affairs, circulated on Sunday afternoon, confirmed the advancement in the negotiations. The release also disclosed that Modi extended an invitation to Carney to visit India.
Carney’s office conveyed his acceptance of Modi’s invitation to visit India in early 2026.
This development signifies a positive turn in the diplomatic relations between Canada and India following a strained period triggered by Canadian accusations linking Indian agents to the extrajudicial killing of Sikh activist Hardeep Singh Nijjar on Canadian soil in 2023.
The announcement comes after Carney and Modi held discussions at the G20 summit in Johannesburg, South Africa.
This encounter marks the second in-person meeting between the two leaders since Carney assumed office; their previous meeting was at the G7 summit in Canada in June.
India’s high commissioner to Canada, Dinesh Patnaik, shared during an interview on Rosemary Barton Live on Sunday morning that trade discussions have been ongoing between the two nations post the G7 summit.
Canada and India commenced negotiations for such a trade agreement 15 years ago, which later transitioned into a sectoral deal focusing on specific industries until the fall of 2023. The trade talks were paused by Ottawa after publicly addressing the allegations related to Nijjar’s killing.
In a social media post on Sunday morning, Modi described his meeting with Carney as “very productive,” acknowledging the positive momentum in bilateral ties since their earlier interaction at the G7 Summit hosted by Canada.
CSIS Stays Alert Against Alleged Threat
The Carney government faces ongoing inquiries about the rationale behind enhancing relations with India, particularly after the RCMP publicly accused India’s government agents of involvement in criminal activities on Canadian soil last year. India has refuted these allegations.
Last week, Director of the Canadian Security Intelligence Service, Dan Rogers, emphasized the persistence of the alleged threat from India, underscoring the need for vigilance.
Patnaik stressed the importance of addressing security concerns in tandem with fostering stronger ties with India, emphasizing that both countries prioritize the safety of their citizens.
If concrete evidence validating Canada’s accusations is presented in court, Patnaik affirmed that India would take necessary actions, similar to its approach in the U.S., clarifying that India currently lacks such evidence.
Patnaik further emphasized the significance of upholding India’s reputation abroad, urging against activities that contradict India’s principles.
Prior to the meeting with Modi, Carney affirmed Canada’s perspective on India as a dependable trading partner, emphasizing the potential for increased trade with one of the world’s largest and fastest-growing economies through an agreement.
The prime minister reiterated the importance of maintaining vigilance against foreign interference and confirmed Canada’s engagement with Indian law enforcement and national security advisors.
Sanjay Ruparelia, a professor specializing in politics and public administration at Toronto Metropolitan University, observed a significant shift in relations between Canada and India, attributing it partly to the trade tensions instigated by former U.S. President Donald Trump.
Sikhs Conducting Independence Referendum in Ottawa
Sikhs for Justice, previously led by Hardeep Singh Nijjar until 2023, is conducting a referendum in Ottawa advocating for an independent Sikh Punjab, known as “Khalistan” by Sikh nationalists.
Inderjeet Singh Gosal, the current leader of the Canadian chapter, criticized the premature efforts of the Carney government to restore diplomatic ties with India, citing ongoing security concerns.
The Indian government has condemned the referendum movement as a provocation and an infringement on its sovereignty. Patnaik dismissed the referendum as farcical and a sensitive issue in India.
Foreign Affairs Minister Anita Anand, responding to queries at the G20 summit, clarified that the meeting between Carney and Modi coinciding with the referendum was not intended to undermine domestic interests but to prioritize law enforcement matters and public safety.
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