From Trade to Security, India and Canada Deepen Engagement Before Carney Visit

Union Minister of Commerce and Industry Piyush Goyal held a virtual meeting with Canada’s Minister of International Trade Maninder Sidhu to advance discussions on the proposed India-Canada Comprehensive Economic Partnership Agreement (CEPA), aimed at strengthening bilateral trade and economic cooperation between the two countries, ahead of Canadian Prime Minister Mark Carney’s India visit later this week.

Sharing details of the interaction in a social media post, Piyush Goyal said, "Had a virtual interaction with @MSidhuLiberal, Minister of International Trade, Canada, on advancing discussions related to the India-Canada Comprehensive Economic Partnership Agreement (CEPA). We also deliberated on strengthening business ties on both sides through regular delegation-level engagements over the coming months to build sustained momentum in our economic partnership".

The Canadian minister also expressed optimism following the meeting.

Trade negotiations between India and Canada, which began in 2010, have stalled multiple times due to various issues.

What Sectors Will the India-Canada CEPA Cover Under the Proposed Agreement?

However, efforts to revive the agreement gained momentum in November when Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed to formally relaunch talks on the CEPA.

The proposed agreement is expected to cover a wide range of sectors, including trade in goods and services, investments, agriculture, and digital commerce.

On the sidelines of the G20 Summit in Johannesburg, Prime Minister Narendra Modi and Prime Minister Mark Carney agreed to begin negotiations on a high-ambition Comprehensive Economic Partnership Agreement aimed at doubling bilateral trade to $50 billion by 2030, according to a statement from the Ministry of External Affairs.

The Canadian Prime Minister’s visit is expected to see the signing of key agreements in areas such as uranium, energy, minerals, and Artificial Intelligence, with trade and economic cooperation also expected to be a major focus.

How Are India and Canada Strengthening Security Cooperation Alongside CEPA Talks?

Alongside economic engagement, India and Canada have emphasised the need for sustained dialogue and enhanced security cooperation to address concerns related to violent extremism and transnational crimes, Indian High Commissioner to Canada Dinesh Patnaik said on Tuesday ahead of Carney’s visit to India and other Indo-Pacific allies.

He highlighted that recent discussions between the two countries’ National Security Advisors during NSA Ajit Doval’s visit to Ottawa marked a significant step forward in strengthening bilateral security ties.

"This was discussed recently when NSA Ajit Doval visited Canada, and he had very extensive discussions with his counterpart, NSA Nathalie Drouin, as well as the Minister for Public Safety. And I think what they have put together is a wonderful action plan to take forward the security cooperation between both sides to address all issues--whether it's fentanyl smuggling, whether it is transnational organised crime, violent extremism, illegal immigration fraud, cybercrime, or cybersecurity," the Indian High Commissioner said.

"We are looking at cooperation in all sectors. Both sides have understood that if we have to make Canada safe and India safe, we need to discuss and talk about all the issues, have liaison officers with each other, and have cooperation which is on time and online," he added.

Earlier this month, India and Canada agreed to establish security and law-enforcement liaison officers during a meeting involving NSA Ajit Doval and Nathalie Drouin, Deputy Clerk and National Security and Intelligence Advisor to the Prime Minister of Canada, as part of the former’s visit to Ottawa.

According to a Ministry of External Affairs release, the two sides agreed to build on their working relationship during the regular bilateral security dialogue, acknowledging progress on initiatives to ensure the safety and security of their citizens and adopting a shared work plan to guide cooperation on national security and law enforcement priorities.

Can Strengthened India-Canada Security Ties Overcome the 2023 Diplomatic Chill?

The establishment of liaison officers is expected to streamline bilateral communications and facilitate timely information sharing on issues of mutual concern, including the illegal flow of drugs, particularly fentanyl precursors, and transnational organised criminal networks.

Patnaik expressed confidence that the strengthened security framework would help address outstanding concerns in the coming years.

"This security cooperation that the NSA's visit has done makes me confident that over the next few years, we will be able to together deal with all the issues that are there between us," he added.

India and Canada experienced a diplomatic chill in 2023 when New Delhi raised concerns over Canada’s perceived leniency towards Khalistani extremist and separatist elements, with former Canadian Prime Minister Justin Trudeau alleging that Indian agents were involved in the killing of NIA-designated terrorist Hardeep Singh Nijjar outside a gurdwara the same year.

However, Patnaik noted that the trajectory of ties has transformed in recent months following Prime Minister Narendra Modi’s visit to Canada for the G7 Summit in Kananaskis in 2025.

How Did High Commissioners and CEPA Talks Help Reset India-Canada Relations?

He said the appointment of High Commissioners in September helped both sides work towards resetting the relationship.

"The Canada-India relations have really undergone a transformation over the last few months, especially after Prime Minister Modi visited Canada to attend the G7 summit in Kananaskis in June-July of last year. This has set the trend for what is happening now--the visit," the High Commissioner said.

“The High Commissioners were appointed at the end of September last year, and for the last four to five months, we've been working very hard to ensure that the relationship is reset back to what it was before. This is an important relationship because it encompasses all aspects of the relationship between the two countries. It's a multi-dimensional relationship--from AI innovation, students, energy, any aspect," he added.

Patnaik also highlighted a series of high-level engagements in recent months, including meetings between External Affairs Minister S. Jaishankar and his Canadian counterpart Anita Anand, as well as discussions on the proposed CEPA.

He said the upcoming visit of the Canadian Prime Minister would further consolidate the renewed momentum in bilateral ties.

"You will see a large host of agreements across sectors--people-to-people exchanges, culture, defence, aerospace, space, energy, critical minerals, AI, innovation, universities, and education. This visit will put a stamp on the activities undertaken in recent months and take the relationship to the next level," he added.

According to a statement from Carney’s office, the Canadian Prime Minister will first arrive in Mumbai and then travel to New Delhi, where he will meet Prime Minister Narendra Modi.

"The leaders will focus on elevating and expanding the Canada-India relationship, with ambitious new partnerships in trade, energy, technology and artificial intelligence (AI), talent and culture, and defence. He will meet with business leaders to identify investment opportunities in Canada and create new partnerships between businesses in both nations," the statement read.

This will be Carney’s first visit to India after he assumed office in March 2025.

(With inputs from ANI)