India, Canada to Resume Trade Talks; EU Deal Likely by Year-End

• India and Canada to restart trade talks and improve ties.
• Focus on cooperation in energy, AI, mobility, and digital tech.
• India and Cyprus to deepen defence and cyber collaboration.

The Prime Minister of India, Narendra Modi, and the Prime Minister of Canada, Mark Carney, had their first meeting ever on the sidelines of the G7 Summit in Kananaskis, Alberta, once Carney took up office.

The two leaders renewed their commitment to re-commencing the halted trade dialogue between India and Canada in order to ignite and restore momentum to negotiate an Early Progress Trade Agreement (EPTA) followed by Comprehensive Economic Partnership Agreement (CEPA).

The Prime Ministers agreed to re-affirm shared democratic values and the intent to put in place a normal diplomatic presence which would see the fast-return of High Commissioners to each capital. The two Prime Ministers recognized the need to return to senior ministerial and working-level engagements as quickly as possible to restore trust and move forward on collaboration.

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They discussed many specific areas of mutual interest including clean energy, critical minerals, liquefied natural gas (LNG), artificial intelligence, higher education, food security, digital transformation and mobility. Modi and Carney agreed to support a free, open, and inclusive Indo-Pacific region and both commended the G7 for its competitive work on climate action for sustainable growth.

This meeting represents a significant step toward lessening tensions that escalated out of control after Canada first raised allegations, in 2023, about India’s alleged involvement in the killing of a Khalistani separatist – claims India denied as politically fueled. Diplomatic relations froze, trade negotiations were abandoned, and visa services were suspended for a period.

Separately, at a joint briefing with President of Cyprus Nikos Christodoulides, Modi called for a five-year roadmap for the two countries over bilateral relations. The two countries have agreed to increase their cooperation in defence, cyber and maritime security and intelligence-sharing. Cyprus reiterated its support for India seeking permanent membership in a reformed UN Security Council.