India and Canada Push to Rebuild Ties: Trade Deal Talks, a Possible Leaders' Visit and the G20 Link
The foreign ministers of India and Canada met on the sidelines of the 81st session of the United Nations General Assembly (UNGA) in New York. India's Ministry of External Affairs described it as a productive discussion to take the relationship "to a higher level".
Both countries are negotiating a Comprehensive Economic Partnership Agreement (CEPA), which is a wide trade deal covering goods, services and investment. They have set a target of finishing the talks by the end of 2026.
The Canadian government said the trade talks are making good progress. It also said it expects a visit to Canada by India's head of government in December 2026, after a formal invitation for a visit in 2026.
A December visit could match the timing of the G20 Leaders' Summit in Miami, United States, scheduled for 14 and 15 December 2026.
Both sides are widening cooperation beyond trade into energy, critical minerals, technology, defence and talent (skilled people and students). They have also agreed to work towards a stronger strategic partnership.
The meeting is part of a steady repair of ties after a serious diplomatic breakdown in 2023 and 2024.
India-Canada Relations: Structural Tensions
India and Canada have old links through Commonwealth membership, trade, education and one of the largest Indian diaspora communities in the world. But the relationship has often been hit by deep, long-running problems, especially over pro-Khalistan extremist groups active in Canada. Between 2023 and 2024, ties fell to their lowest point, with both sides expelling diplomats. Since mid-2025, both governments have been slowly rebuilding the relationship step by step.
The foreign ministers' meeting at the UNGA shows that the reset which began in 2025 is still moving forward. Trade talks, a possible leaders' visit in December and new areas like critical minerals and energy are being used to build trust. But the older tensions over extremism and security remain the main test of how far this reset can go.
Free Trade Agreements: Concept and WTO Framework
A Free Trade Agreement (FTA) is a deal between two or more countries to remove or sharply cut import taxes (tariffs) on most of the goods they trade with each other. Each country still keeps its own tariffs for countries outside the deal. Modern FTAs often go much further and also cover services, investment, digital trade and rules on standards. India often uses names like CEPA, CECA or TEPA for these wider deals, but the basic idea is the same.
The main economic goal of the India-Canada reset is the CEPA. Both governments say talks are making good progress and aim to finish by the end of 2026. If signed, it would join India's recent run of trade deals with the UAE, EFTA and the UK.
Group of Twenty (G20)
The Group of Twenty, or G20, is a club of the world's biggest economies. Its leaders meet once a year to discuss the world economy, money, trade, climate, health and development. Today it has 21 members: 19 countries, the European Union (EU) and the African Union (AU). Together, these members produce about 85% of the world's GDP (total income), about 75% of world trade and are home to about two-thirds of the world's people.
India and Canada are both G20 members. The 2026 G20 Leaders' Summit is scheduled in Miami on 14-15 December. The Canadian government expects a visit by India's head of government in December, and this visit could be timed close to the summit, so the two events may give both sides a chance to push the trade talks forward.
- India-Canada foreign ministers met at the 81st UNGA session (New York, September 2026)
- India-Canada CEPA: Terms of Reference signed 2 March 2026; target to conclude talks by the end of 2026
- India-Canada goods trade: about US$8.66 billion in 2024-25
- Cameco uranium deal (March 2026): about 22 million pounds over nine years, deliveries 2027 to 2035
- Indian-origin population in Canada: about 1.86 million
- Nijjar killing: 18 June 2023, Surrey, British Columbia; six diplomats expelled by each side in October 2024
- High Commissioners restored in August 2025 after the G7 Kananaskis Summit (June 2025)
- G20 Miami Summit: 14-15 December 2026, under the US presidency
- G20: 21 members; India's presidency 2022-23; African Union joined 9 September 2023