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Canada and India have agreed to initiate negotiations on a new free trade agreement, according to Prime Minister Mark Carney. This development signals a move toward improving relations after recent tensions.
Carney’s office announced the upcoming talks following a meeting with Indian Prime Minister Narendra Modi on Sunday during the G20 summit in South Africa.
Relations between the two countries had worsened after Canada accused India of involvement in the 2023 assassination of a Canadian Sikh leader—an allegation India denied.
This diplomatic conflict significantly affected diplomatic and trade relations, which saw approximately $9 billion worth of goods and services exchanged in 2023.
Since taking office in March, Carney has emphasized the importance of diversifying Canada’s trade partnerships beyond the U.S., which has imposed heavy tariffs on Canadian industries.
Carney stated that both leaders agreed to pursue bold negotiations for a trade deal aiming to double bilateral trade to CAD 70 billion by 2030.
He also confirmed he has accepted Modi’s invitation to visit India early next year.
Canada hosts the world’s largest Sikh community outside India, including activists pushing for Khalistan, a movement seeking an independent state for Sikhs.
Ottawa accused India of orchestrating the 2023 Vancouver murder of Hardeep Singh Nijjar, a Canadian citizen and prominent Khalistan supporter, along with targeting other Sikh activists.
This issue has caused friction between India and several Western nations with significant Sikh populations.
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