Inca relations warm up, agree to restart trade negotiations
Beijing, November 24 (Xinhua) -- During the G20 summit held in Johannesburg, South Africa, Indian Prime Minister Modi and Canadian Prime Minister Carney held bilateral talks on the 23rd and agreed to restart previously stalled trade agreement negotiations.
On the 23rd, the Indian Prime Minister's Office issued a statement saying that the leaders of the two countries have agreed to launch negotiations on the Comprehensive Economic Partnership Agreement (CEPA), with the goal of achieving a bilateral trade volume of $50 billion by 2030, doubling the current level. Both sides confirm that they will continue and expand their long-term cooperation in the field of civil nuclear energy, including the ongoing discussion on long-term uranium supply arrangements.
During Modi's visit to Canada in April 2015, the two countries signed a contract for a Canadian mining company to supply over 3000 tons of enriched uranium to India over a period of five years for use in India's nuclear power plants.
Canadian Prime Minister Carney confirmed on social media platform X that the two countries have restarted trade agreement negotiations and said, "India is the world's fifth largest economy, which means huge opportunities for Canadian workers and businesses
According to the website of the Canadian Prime Minister's Office on the 23rd, Carney has accepted Modi's invitation and is scheduled to visit India in early 2026. Earlier on the 23rd, Carney said that although he acknowledged that there may be "some friction" between the two countries, he still sees India as a "reliable trading partner".
According to Reuters, the resumption of trade negotiations between the Incas indicates a warming of relations between the two countries.
The two countries have been conducting CEPA negotiations intermittently since 2010. In September 2023, then Canadian Prime Minister Trudeau publicly accused the Indian government of involvement in the assassination of Canadian Sikh leader Hadip Singh Nizar, which the Indian side denied. The discord between the two countries escalated and they expelled each other's diplomats. India also temporarily suspended visa issuance to Canadian personnel, and bilateral relations deteriorated. Canada announced the suspension of trade agreement negotiations with India this month.
Despite diplomatic disputes, bilateral trade between the Incas continued to grow thereafter, but in terms of India's economic size, the scale of trade between the two sides remained relatively small. Data shows that the total trade volume of goods and services between the two sides in 2024 is about 31 billion Canadian dollars (approximately 22 billion US dollars), of which Canada's service exports to India reach 16 billion Canadian dollars (11.4 billion US dollars), with a significant surplus.
During the G7 summit held by Canada in June this year, Carney met with Modi, who was invited to attend as a guest. Both sides agreed to send new high commissioners (equivalent to ambassadors) to each other, leading to a easing of relations between the two countries.
After Trump returned to the White House, the relationship between Canada and its largest trading partner, the United States, became increasingly tense. Carney focused on promoting the expansion of trade ties with other countries, promising to double Canada's exports to countries outside the United States within ten years.