India and Canada Forge New Economic Path with CEPA Trade Deal

Trade organizations are breathing a sigh of relief. The economic corridor between India and Canada is set for a major boost. This follows a significant diplomatic reset between the two nations.

The breakthrough came during the G20 summit. Prime Ministers Narendra Modi and Mark Carney announced fresh negotiations for a Comprehensive Economic Partnership Agreement (CEPA). This move signals a strong commitment to mending ties and enhancing bilateral trade.

Business Council Champions Renewed Trade Momentum

The Canada-India Business Council (C-IBC) remained active despite recent tensions. Its president, Victor Thomas, called the diplomatic reset a chance for great economic momentum. He emphasized the importance of securing a reliable trade partner during global uncertainty.

According to Reuters, bilateral trade reached 30.9 billion Canadian dollars in 2024. The C-IBC continued hosting forums to navigate the diplomatic challenges. Their persistence helped keep business dialogue alive when political relations were strained.

From Paused Talks to a Comprehensive Partnership

Previous trade talks for an Early Progress Trade Agreement were paused by Ottawa in 2023. The new goal is a more ambitious CEPA. This shift was signaled at a C-IBC event and has now been officially confirmed.

Other groups also maintained engagement. The Canadian Hindu Chamber of Commerce led a trade mission to India in January 2024. They plan another delegation for early next year, capitalizing on the renewed positive atmosphere.

The new India Canada CEPA trade deal marks a dramatic turnaround. It promises to unlock significant economic potential for both nations. This partnership is a testament to resilient commercial diplomacy.

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What is the CEPA between India and Canada?

The CEPA is a Comprehensive Economic Partnership Agreement. It is a proposed trade deal to deepen economic ties. Negotiations were officially launched after the recent G20 summit.

Why were previous trade talks paused?

Talks for an Early Progress Trade Agreement were paused in August 2023. This occurred just before major diplomatic tensions arose between the two countries. The new CEPA talks represent a fresh start.

How much trade currently exists between the two nations?

India was Canada’s seventh-largest trading partner in 2024. Two-way trade in goods and services totaled 30.9 billion Canadian dollars. This figure is expected to grow with a new agreement.

Which business groups supported the relationship?

The Canada-India Business Council and the Canadian Hindu Chamber of Commerce were key supporters. They continued trade missions and forums throughout the diplomatic difficulties. Their work helped preserve the economic corridor.

What caused the diplomatic tensions?

Tensions escalated in September 2023 over allegations made by the former Canadian government. India called those accusations “absurd”. The relationship has improved significantly under the new Canadian leadership.