Carney and Modi Push for Trade Deal Ahead of December Visit to Canada

By: The Obnews Editorial Team

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Prime Minister Mark Carney and Indian Prime Minister Narendra Modi renewed their commitment to advancing a comprehensive trade agreement during a telephone conversation on Tuesday, October 13, as Canada and India continue rebuilding their economic and diplomatic relationship. The discussion also reaffirmed preparations for Modi’s visit to Canada in December, with both leaders agreeing to maintain close contact in the weeks ahead.

Modi described the conversation as “warm and productive,” highlighting opportunities for cooperation in trade, energy, technology, security and people-to-people relations. His public account emphasized turning the renewed momentum between the two countries into concrete results across their strategic partnership.

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At the centre of the economic agenda is the proposed Canada–India Comprehensive Economic Partnership Agreement, known as CEPA. Ottawa has identified the end of 2026 as its objective for concluding negotiations, and an October 2 government statement said a fifth negotiating round was scheduled for October 5–9. Tuesday’s conversation reinforced the commitment to reaching an agreement at the earliest opportunity, although no completed deal was announced.

The negotiations support an ambitious Canadian objective of increasing annual two-way trade with India to C$70 billion by 2030. Global Affairs Canada reports that bilateral trade reached C$30.4 billion in 2025, including C$11 billion in goods, illustrating the substantial expansion required to achieve that goal. The C$70 billion figure represents a future trade target, rather than the value of contracts secured through the latest discussions.

The leaders’ conversation coincides with Canada’s largest trade delegation to India in more than three decades. International Trade Minister Maninder Sidhu is leading nearly 300 delegates on an October 12–17 mission with stops in Mumbai and Bengaluru, connecting Canadian businesses with Indian decision-makers, industry representatives and potential customers. Participating sectors include aerospace and space, clean technologies, energy transition, information and communication technologies, life sciences and agri-food.

Foreign Affairs Minister Anita Anand is also visiting India as part of an October 13–16 trip that includes the United Arab Emirates. Her planned discussions with Indian External Affairs Minister Subrahmanyam Jaishankar cover trade, energy, security, defence and people-to-people ties. According to Global Affairs Canada, the meeting will be their eleventh since September 2025, reflecting the frequency of diplomatic engagement during the effort to strengthen relations.

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Security cooperation remains an important part of that effort. In a separate dialogue held during Canadian adviser David Morrison’s October 5–7 visit to India, Morrison and Indian National Security Adviser Ajit Doval reviewed cooperation on law enforcement and security. A Canadian government statement said the two sides agreed to deepen work against transnational organized crime, terrorism, violent extremism, human and drug trafficking, cybercrime and extortion, alongside cooperation concerning the extradition of criminal offenders.

The diplomatic rebuilding follows a severe deterioration in relations over the 2023 killing of Canadian Sikh activist Hardeep Singh Nijjar in British Columbia. Canadian authorities alleged links between Indian government agents and the killing, allegations India denied, and both countries expelled diplomats in 2024. Carney has subsequently pursued renewed engagement with India as part of a broader effort to diversify Canada’s international economic relationships.

Tuesday’s discussion also extended to international security and reliable supplies of energy and agricultural products. The Canadian readout said the leaders considered the effects of geopolitical instability on the Indo-Pacific, while Carney thanked Modi for his efforts toward a peaceful resolution to Russia’s war on Ukraine. The statement did not provide details of a new peace proposal.

Modi’s December visit had already been discussed publicly before Tuesday’s call. In September, Carney said the countries were making progress in trade negotiations and were aiming to conclude talks around the mid-December G20 summit. The latest exchange strengthens the diplomatic preparations for that period, while the terms of any eventual trade agreement remain subject to the negotiations still underway.

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