Signalling a repair in strained bilateral relations, Prime Minister Narendra Modi and his Canadian counterpart Mark Carney discussed resuming the India-Canada early progress trade agreement (EPTA) talks, almost two years after they were stalled due to political problems.

As a first step in restoring normal ties, the leaders agreed to designate new high commissioners, so that regular services could be resumed for citizens and businesses, the two sides confirmed.  

Modi and Carney, who met for the first time after the Canadian PM assumed office in March this year, held bilateral talks on the sidelines of the G7 summit in Kananaskis, Canada, on Tuesday. 

“The leaders underscored the importance of restarting senior ministerial as well as working-level engagements across various domains to rebuild trust and bring momentum to the relationship,” according to a statement issued by the Ministry of External Affairs on Wednesday.

The reconciliation between India and Canada comes at a time when US President Donald Trump’s reciprocal and sector-specific tariffs have hit businesses in both countries.

Trudeau’s accusations

Bilateral relations between India and Canada hit rock bottom in 2023 when former Canadian PM Justin Trudeau accused Indian authorities of being involved in the murder of Canadian Sikh separatist Hardeep Singh Nijjar.

In October 2024, India expelled six Canadian diplomats including the acting High Commissioner, after which Canada followed suit and expelled Indian diplomats.

With both countries now interested in repairing relations, Modi and Carney agreed to pursue constructive steps to restore stability in India-Canada ties. 

Opportunities for future collaboration in areas such as clean energy, digital transformation, artificial intelligence, LNG, food security, critical minerals, higher education, mobility and supply chain resilience were discussed by the two leaders. 

“They reaffirmed their shared interest in promoting a free and open Indo-Pacific. The leaders also discussed the importance of restarting the stalled negotiations on the Early Progress Trade Agreement (EPTA), with a view to paving the way for a Comprehensive Economic Partnership Agreement (CEPA). They agreed to task their respective officials to engage further in this regard,” the statement added.

The leaders underlined the deep people-to-people connections between the two countries and agreed to leverage this living bridge to the benefit of both countries, the statement noted.

Published on June 18, 2025