India and Canada Forge New Trade Path with CEPA Negotiations

India and Canada have agreed to start talks on a major new trade deal. The decision was announced after a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney. The meeting took place on the sidelines of the G20 Leaders’ Summit in Johannesburg.

The agreement marks a significant step in strengthening bilateral ties. Both leaders expressed appreciation for the growing momentum in the relationship. They committed to advancing cooperation across several key sectors.

Ambitious Trade Targets and Strategic Cooperation

The proposed Comprehensive Economic Partnership Agreement (CEPA) is highly ambitious. Its primary objective is to double bilateral trade. The target is to reach US$ 50 billion by the year 2030.

According to Reuters, this agreement provides a clear set of rules for businesses. It also includes a formal dispute resolution mechanism. This framework is expected to protect investments and scale trade effectively.

The partnership extends beyond simple goods exchange. Both sides reaffirmed their longstanding civil nuclear cooperation. They are also exploring deeper collaboration in defence and space sectors. This unlocks new potential for strategic ties.

Resetting a Strained Relationship

This development signals a major reset in India-Canada relations. Engagement had previously cratered under former Prime Minister Justin Trudeau. The current progress under Prime Minister Carney is seen as a positive breakthrough.

The Associated Press reported that Canada is actively seeking to diversify its trade partnerships. India is viewed as a reliable partner in this effort. The country’s expertise in renewable energy and technology is particularly attractive.

The new trade pact will help both nations. It fosters economic growth and supply chain diversification. For Canada, it offers an alternative to over-reliance on a single market. For India, it opens doors to increased foreign investment, including from Canadian Pension Funds.

The launch of CEPA negotiations marks a pivotal moment for both nations. This high-ambition trade deal is set to redefine their economic partnership. The India Canada CEPA negotiations promise a new era of shared prosperity and strategic alignment.

Thought you’d like to know

What is the main goal of the India-Canada CEPA?

The primary goal is to significantly increase bilateral trade. The two countries have set a target of US$ 50 billion in trade by 2030. The agreement aims to achieve this by creating clearer rules and reducing barriers.

Which sectors will benefit from this new agreement?

Key sectors include trade, investment, and technology. The partnership also focuses on clean energy, critical minerals, and artificial intelligence. Defence and space are identified as new areas for deeper cooperation.

Why is this trade deal important for Canada?

It helps Canada diversify its international trade and supply chains. The country views India as a reliable partner and a fast-growing economy. This reduces dependence on other dominant markets.

How does this improve the overall bilateral relationship?

This agreement helps reset a relationship that was previously strained. It builds on recent diplomatic engagements to restore trust. It paves the way for more stable and multifaceted cooperation.

What other collaboration was announced alongside the CEPA?

Along with Australia, India and Canada launched a new technology partnership. The ACITI initiative will focus on critical and emerging technologies. This aims to foster innovation and diversify supply chains.

Trusted Sources

Reuters, The Associated Press