India, Canada to revive trade talks as Modi meets Carney at G7; EU free trade pact likely by year-end

Mint

3 hours ago

New Delhi: Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on Wednesday agreed to revive the stalled trade talks between the two countries. The two leaders met for the first time since Carney took office following Canada's recent elections.
The meeting, held on the sidelines of the G7 Summit in Kananaskis, Alberta, marked a step toward repairing a relationship that had seen several months of diplomatic chill.
Both sides underscored the need to resume negotiations on the Early Progress Trade Agreement (EPTA) and take it forward with the objective of concluding a broader Comprehensive Economic Partnership Agreement (CEPA), as per a press note issued by the Prime Minister's Office (PMO).
Modi and Carney reaffirmed their commitment to shared democratic values and sovereignty, and agreed to restore normal diplomatic presence, including the early return of High Commissioners to each other's capitals, as per the PMO statement.
They also highlighted the need to restart senior ministerial and working-level engagements to build trust and momentum, the PMO said in the statement.
The leaders discussed expanding cooperation in areas such as clean energy, critical minerals, LNG, artificial intelligence, higher education, food security, mobility and digital transformation. Both the leaders reiterated support for a free and open Indo-Pacific and acknowledged the progress made at the G7 on global issues including climate action and sustainable growth.
India-Canada relations took a sharp downturn in 2023 after Canadian Prime Minister Justin Trudeau accused Indian agents of involvement in the killing of a Khalistani separatist. India rejected the allegations as politically motivated and expelled Canadian diplomats, prompting reciprocal action from Ottawa.
Bilateral ties froze, trade talks were paused, and visa services were briefly suspended. The recent meeting between PM Modi and new Canadian PM Mark Carney signals the first steps toward thawing the strained relationship.At a separate joint press briefing with the President of Cyprus, Prime Minister Modi drew parallels between India's 'Viksit Bharat 2047' vision and Cyprus's 'Vision 2035,' and called for a five-year roadmap to deepen bilateral ties.
The two countries agreed to strengthen defence industry collaboration, initiate dialogues on cyber and maritime security, and set up a real-time information exchange mechanism to combat terrorism and cross-border crimes.
Meanwhile, in a joint press briefing with the President of Cyprus Nikos Christodoulides, Modi reiterated that the India-EU FTA would be concluded by the end of this year. He had made a similar statement during his Cyprus visit on 16 June prior to the G7 Summit.
Cyprus also reaffirmed its support for India's bid for permanent membership in a reformed UN Security Council and agreed to enhance cooperation in defence, cyber and maritime security, as well as set up a mechanism for real-time intelligence sharing to counter terrorism, drug trafficking and arms smuggling.
Modi said initiatives like the India-Cyprus-Greece Business and Investment Council and new mobility and air connectivity arrangements would help deepen economic linkages with the Mediterranean region.