India, Canada Move Quickly on Trade Deal as Ties Improve; Canadian FM Signals New Strategy Amid US Tensions
India and Canada have agreed to fast-track progress on a long-awaited trade deal as relations improve after two years of diplomatic tension. Canadian Foreign Minister Anita Anand shared updates following PM Modi and PM Mark Carney’s meeting at the G20 Summit, with a goal to double trade to $50 billion by 2030.
Canadian Foreign Minister Anita Anand discusses fast-tracking the India–Canada trade deal after the G20 Summit in South Africa.
Canadian Foreign Minister Anita Anand has confirmed that India and Canada will move swiftly to revive work on a long-pending trade deal, marking a significant thaw in relations after nearly two years of diplomatic strain. The announcement comes shortly after Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met during the G20 Summit in South Africa last weekend.
Both countries are now aiming to double bilateral trade to $50 billion by 2030, signalling renewed intent to strengthen economic ties.
Anand said Ottawa has adopted a new foreign policy direction shaped by shifting global trade dynamics and the ongoing US-led tariff pressures. “The leaders were adamant that this work proceed as quickly as possible,” she told AP, confirming that the talks will now advance at an “expeditious” pace.
Diplomatic Reset After Tense Phase
India-Canada relations deteriorated sharply in 2023 after allegations linking New Delhi to the killing of Khalistan separatist Hardeep Singh Nijjar — a claim India strongly denied. Trade negotiations were halted as tensions escalated.
Momentum resumed earlier this year when Carney invited PM Modi to the G7 Summit in Alberta, followed by both governments restoring ambassador-level diplomatic representation in August.
“This is a step-by-step process, and in the last six months, significant progress has been made,” Anand said.
Carney is expected to visit India early next year on Modi’s invitation, further accelerating the engagement.
Canada Seeks Diversification Beyond US Market
With more than 75% of Canadian exports dependent on the United States, Anand highlighted a renewed push toward global diversification — especially as the USMCA trade pact faces review in 2026.
“This is a new approach to foreign policy shaped by a changing global order where protectionism is rising,” Anand said. “There’s a new government, a new policy, and a new world order — and Canada must adapt.”
Canada is also working to repair ties with China. Carney and Chinese President Xi Jinping recently met at the Asia-Pacific Summit, signalling cautious diplomatic reopening.
Talks With US Remain Open
Even as Canada seeks broader partnerships, tensions with the Trump administration remain. Washington halted trade discussions after Ontario aired anti-tariff campaign advertisements.
Despite this, Anand stated Canada remains open to negotiating again with the US.
“We are operating under the reality that the US has fundamentally shifted all of its trade relationships,” she said.
Key Trade Outlook
- Restarted CEPA trade negotiations
- Target: $50 billion India-Canada trade by 2030
- Carney’s India visit expected early 2026
- Broader Canadian trade diversification strategy underway
With diplomatic ties stabilizing, both nations now see trade as a pathway to rebuilding trust — and unlocking new strategic and economic opportunities.
