After 2-year standoff, India, Canada to resume trade talks, Pg12

Key Highlights:

• India and Canada have agreed to resume negotiations for a Comprehensive Economic Partnership Agreement (CEPA) after a two-year pause.
• The decision was made during a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at the G20 Leaders’ Summit in Johannesburg.
• India aims to increase bilateral trade to $50 billion by 2030, while Canada targets $70 billion by the same year.
• In 2024, the India-Canada bilateral trade in goods and services was approximately $22.6 billion.

Detailed Insights:

• Initial trade deal talks between Canada and India began 15 years ago, but were later reduced to a sectoral agreement focusing on specific industries.
• Trade negotiations were suspended in late 2023 following allegations by the former Canadian Prime Minister Justin Trudeau regarding the involvement of Indian government agents in the killing of Hardeep Singh Nijjar.
• Relations improved after the change of leadership in Ottawa in March, leading to the resumption of trade talks and an invitation for Carney to visit India in early 2026.
• The CEPA aims to cover various sectors, including goods, services, investment, agriculture, digital trade, mobility, and sustainable development, with both countries expressing confidence in its potential to boost economic ties.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A trade agreement between two countries that aims to reduce or eliminate barriers to trade and investment.
• Bilateral Trade: Trade between two countries.
• G20 Leaders’ Summit: An annual meeting of leaders from the world's major economies to discuss financial and socioeconomic issues.