India, Canada agree to conclude free trade pact talks by year-end

On the sidelines of the G7 Summit in France, the Indian Prime Minister met Canadian Prime Minister Mark Carney, committing to conclude Comprehensive Economic...

What Happened

On the sidelines of the G7 Summit in France, the Indian Prime Minister met Canadian Prime Minister Mark Carney, committing to conclude Comprehensive Economic Partnership Agreement (CEPA) negotiations by December 2026.
Both sides set a bilateral trade target of $50 billion by 2030 (from the current ~$17 billion/year in combined goods and services trade).
India and Canada launched talks on an intelligence-sharing framework, marking a significant deepening of security cooperation.
The two sides also signed a $1.9 billion uranium supply agreement for 10,000 tonnes of uranium to be supplied by Canadian company Cameco to Indian nuclear power plants between 2027 and 2035.
This G7 meeting followed PM Carney's February 2026 visit to India (February 27 – March 2, 2026) — Canada's first full prime ministerial visit to India since 2018 — during which CEPA negotiations were formally re-launched.
Two formal CEPA negotiating rounds have been completed; a third round was underway in Ottawa (May 25–29, 2026).
The diplomatic reset follows a prolonged freeze in India-Canada relations since late 2023, triggered by allegations made by the previous Canadian government over the killing of Hardeep Singh Nijjar, an Indian national designated as a terrorist by India, outside a gurdwara in Surrey, British Columbia in June 2023.

Static Topic Bridges

Comprehensive Economic Partnership Agreements (CEPAs)

A Comprehensive Economic Partnership Agreement (CEPA) is a broad trade and economic cooperation framework that covers goods, services, investments, intellectual property, competition policy, and sometimes government procurement — going beyond the traditional goods-focused FTA.

India has signed CEPAs with Japan (2011), South Korea (2010), UAE (2022), and Australia (2022, interim ECTA and then full CECA talks ongoing); CETA with the UK is a variant of this form.
India-Canada CEPA negotiations were first launched in November 2010 as FIPA (Foreign Investment Promotion and Protection Agreement) talks, and later expanded; exploratory negotiations ran until they were quietly suspended around 2016–2017 due to political differences.
A formal re-launch was agreed by Carney and the Indian PM in November 2025 during a bilateral on the sidelines of the G7 in Kananaskis, Canada; formally initiated during Carney's India visit (Feb-Mar 2026).
Canadian merchandise exports to India: primarily lentils, potash, coal, copper; Indian exports to Canada: pharmaceuticals, gems and jewellery, machinery, clothing.
Services trade is significant: India is one of the largest sources of skilled immigration to Canada; over 1 million people of Indian origin live in Canada.

Connection to this news: The December 2026 target for CEPA conclusion is ambitious given the complexity of the agreement and the two rounds completed so far; however, the political will demonstrated at G7 and Carney's February India visit signals both sides are committed to delivery.

India-Canada Diplomatic Tensions (2023–2025) and Reset

India-Canada relations experienced their sharpest downturn in decades following allegations made by former Canadian Prime Minister Justin Trudeau in September 2023, linking Indian government officials to the killing of Hardeep Singh Nijjar (June 2023). India rejected these allegations and expelled Canadian diplomats; Canada reciprocated. CEPA negotiations, which were underway, were suspended.

Hardeep Singh Nijjar: A Canadian citizen of Indian origin, designated as a terrorist by India's Ministry of Home Affairs under the Unlawful Activities (Prevention) Act (UAPA). He was killed outside a Sikh gurdwara in Surrey, British Columbia, on June 18, 2023.
India's position: Consistently denied any governmental involvement; characterised the accusations as unfounded and diplomatically motivated.
Diplomatic expulsions: India expelled six Canadian diplomats in October 2023; Canada withdrew several of its own.
Political reset: The election of Mark Carney as Canadian PM in March 2025 (replacing Justin Trudeau's Liberal government under Trudeau's own leadership) provided a political opening; Carney signalled a reset in his first bilateral engagement with India.
The diplomatic reset since late 2025 represents one of the fastest turnarounds in a major bilateral relationship in India's recent diplomatic history.

Connection to this news: The G7 sideline meeting and CEPA deadline announcement signal the diplomatic reset has moved from symbolism to substance, with an economic deliverable (CEPA + uranium deal) anchoring the relationship.

Canada as a Strategic Partner for India's Energy and Critical Minerals

Canada possesses some of the world's largest reserves of uranium, critical minerals (lithium, cobalt, nickel, copper), and clean energy resources, making it strategically important for India's energy transition and nuclear energy ambitions.

Canada holds approximately 9% of the world's known uranium reserves; Cameco Corporation (headquartered in Saskatoon, Saskatchewan) is one of the world's largest uranium producers.
India's nuclear power plants: 24 operational reactors with a combined capacity of ~7.5 GWe; 8 more under construction.
India has Nuclear Cooperation Agreements (NCAs) with Canada, the US, Russia, France, Australia, Japan, and others — enabling uranium procurement and technology transfer.
The India-Canada uranium deal (10,000 tonnes, 2027–2035, worth $1.9 billion) supplements India's existing uranium supply agreements with Kazakhstan, Australia, and Uzbekistan.
India's Atomic Energy Act, 1962 restricts nuclear operations to public sector entities under the Department of Atomic Energy (DAE) and its subsidiaries (NPCIL, UCIL).

Connection to this news: The uranium supply deal, announced alongside the CEPA commitment, demonstrates the strategic depth of the India-Canada reset — linking trade, energy security, and nuclear cooperation in a single diplomatic package.

The G7 Summit Format and India's Outreach Role

The G7 (Group of Seven) is an annual forum of the seven largest advanced economies, hosting a rotating presidency. Outreach invitations to non-G7 nations allow the host to shape the agenda and signal diplomatic priorities.

G7 2026 hosted by France at Évian-les-Bains; France invited India, Brazil, Egypt, Kenya, and South Korea as outreach partners.
India is not a G7 member but has attended G7 outreach sessions regularly since the mid-2000s, reflecting its growing economic and geopolitical weight.
The G7 collectively produces approximately 45% of global GDP; India's GDP (~$4 trillion in 2025 nominal terms) makes it the 5th largest globally.
G7 summits in 2025 (Canada, Kananaskis) and 2026 (France, Évian) have both featured significant India-related bilateral meetings on the sidelines — illustrating India's use of multilateral forums for bilateral diplomatic advances.

Connection to this news: The CEPA deadline announcement was made at the G7 sidelines, reflecting India's strategy of using high-profile multilateral settings to signal bilateral commitments and lend political weight to economic negotiations.

Key Facts & Data

CEPA deadline: December 2026 (announced at G7, France, June 2026)
Bilateral trade target: $50 billion by 2030 (current: ~$17 billion/year — goods + services)
Current goods trade (2024): C$13.3 billion; services trade exceeded C$14 billion in 2025
Uranium deal: 10,000 tonnes; supplier: Cameco (Canada); $1.9 billion; supply period 2027–2035
CEPA rounds completed: 2 formal rounds; 3rd round in Ottawa, May 25–29, 2026
Formal CEPA re-launch: Carney's India visit, February 27 – March 2, 2026
Nijjar killing: June 18, 2023, Surrey, British Columbia
Diplomatic freeze period: Late 2023 – late 2025
Diplomatic reset trigger: Election of Mark Carney as Canadian PM, March 2025
Key Canadian export to India: Lentils, potash, uranium, coal
Key Indian export to Canada: Pharmaceuticals, gems/jewellery, machinery, IT services
India's nuclear capacity: ~7.5 GWe (24 reactors); target: 100 GWe by 2047
Cameco HQ: Saskatoon, Saskatchewan, Canada
Canada's uranium reserves: ~9% of global known reserves