Canada pushing for ‘game-changer’ trade deal with India, says Mark Carney

Canadian Prime Minister Mark Carney has said Canada is working “very rapidly” toward a potential “game-changer” trade agreement with India, signalling renewed momentum in bilateral economic ties after a prolonged diplomatic strain between the two countries.

Speaking about Canada’s economic priorities, Carney said India represents a major strategic economic partner and stressed the importance of strengthening trade and investment relations between the two countries.

The remarks come at a time when both countries are attempting to stabilise relations after tensions escalated in 2023 over allegations made by former Canadian Prime Minister Justin Trudeau regarding the killing of Khalistani separatist Hardeep Singh Nijjar.

Carney said the proposed agreement could significantly expand bilateral trade and economic engagement between India and Canada.

India and Canada have for years discussed a Comprehensive Economic Partnership Agreement (CEPA), although negotiations slowed following diplomatic tensions.

The renewed push reflects growing interest from both sides in strengthening economic partnerships amid shifting global supply chains and geopolitical uncertainty.

India is one of Canada’s major trading partners in the Indo-Pacific region, while Canada remains an important source of energy resources, education links and agricultural exports.

Relations between New Delhi and Ottawa deteriorated significantly after Trudeau alleged in 2023 that there were “credible allegations” linking Indian agents to Nijjar’s killing in Canada.

India strongly rejected the allegations as “absurd” and “motivated,” leading to diplomatic expulsions and a sharp downturn in bilateral engagement.

Trade negotiations and several official interactions were subsequently affected.

However, recent months have seen efforts from both governments to stabilise ties, particularly in areas related to trade, investment and strategic cooperation.

A trade agreement between India and Canada could impact sectors including agriculture, clean energy, technology, education, pharmaceuticals and critical minerals.

Canada has been seeking stronger economic engagement in the Indo-Pacific, while India has increasingly pursued trade diversification and supply-chain partnerships with major economies.

The agreement could also become strategically important as countries attempt to reduce overdependence on limited global supply networks and strengthen economic resilience.

Officials from both countries have not yet announced a timeline for concluding the proposed deal, but Carney’s remarks indicate that discussions are moving forward at a faster pace.