India, Canada Formally Resume CEPA Talks

On 24th November 2025, India and Canada have agreed to formally restart negotiations on a Comprehensive Economic Partnership Agreement (CEPA) after Prime Minister and Canadian Prime Minister met in Johannesburg on the sidelines of the G20 Leaders’ Summit.

Key Points

Divergence in Trade Ambition: India aims to raise bilateral trade to $50 billion by 2030, while Canada has set a more ambitious target of $70 billion. In 2024, bilateral trade in goods and services stood at $22.6 billion.
Different Estimates: Sources said Canada’s higher projection reflects a more optimistic assessment of India’s market potential by Canadian businesses.
Long-Pending Trade Pact: CEPA negotiations began 15 years ago, but were later downgraded to a sector-specific agreement covering limited industries.
Repairing Ties: Both nations have taken steady steps to mend relations that were strained for nearly two years.
Geopolitical Context: The renewed engagement comes at a time when India–US ties have been affected by a 50% tariff imposed by the US administration. Canada too has been facing the pressure of US tariffs.
Diplomatic Freeze in 2023: Ottawa had suspended trade talks in late 2023 after then PM Justin Trudeau alleged possible Indian involvement in the killing of Canada-based Khalistan separatist Hardeep Singh Nijjar — a claim India rejected as “absurd”.