PM Narendra Modi and Canadian PM Mark Carney
After two years of diplomatic standoff and stalled talks, the ice in relations between India and Canada has finally started melting. A big news came on Sunday which has awakened a new ray of hope in the business world of both the countries. During the ongoing G20 summit in Johannesburg (South Africa), an important bilateral meeting took place between Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney.
The biggest achievement of this meeting was that both the leaders have agreed to resume talks on stalled trade deals. This decision is not only a diplomatic victory, but it is also going to have a direct impact on the economy and employment opportunities of both the countries in the future.
70 billion dollar ‘Mega Plan’
After this meeting, it was told by the Prime Minister’s Office that both the countries will start negotiations on a very ambitious ‘Comprehensive Economic Partnership Agreement’ (CEPA). The goal is very clear, to double the bilateral trade between the two countries to 50 billion US dollars (about 70 billion Canadian dollars) by the year 2030.
Canadian PM Mark Carney described the meeting as positive on the social media platform ‘X’, saying, “India is the fifth largest economy in the world. This agreement means big and new opportunities for Canadian workers and businesses.”
Not just trade, the two leaders also recalled their long-standing nuclear cooperation. It is reported that discussions are also going on to increase cooperation in the field of uranium supply and nuclear energy, which is a good sign for India’s energy needs.
Why is this U-turn special?
This news is also big because in 2023, relations between the two countries had reached their worst phase. Ottawa had accused the Indian government of involvement in the killing of a Canadian Sikh separatist, which was vehemently rejected by New Delhi. After this dispute, business talks came to a complete standstill.
But now, the meeting during the G7 summit in June and now the discussion in the G20 have made it clear that both the countries want to move forward. Mark Carney is now reducing his dependence on America and looking towards trusted partners like India. He has pledged to double his exports to countries other than America in the next decade.
Trade between the two countries did not stop
Even though diplomatic relations may have been bad, if we look at the figures, trade had not stopped. In the year 2024, trade in goods and services between the two countries will reach about 31 billion Canadian dollars (about 21.98 billion US dollars). However, Canada has a slight advantage in this because it is ahead in the export of services.
Experts believe that this figure is still very low considering India’s huge economy (Canada’s trade with China is four times more).
Mark Carney clearly said on Sunday that he considers India a reliable partner. He acknowledged that there may be differences on some issues, but he wants to give a strong foundation to business relations. He says, “We are looking towards an agreement that protects our and Indian businesses, creates a clear set of rules and strengthens the dispute resolution mechanism.”