Modi and Carney agree to speed up India-Canada trade pact in phone call
Representative image: Kranich17 / Pixabay
PM Narendra Modi and Canada's PM Mark Carney spoke on 13 October 2026 and recommitted to concluding a trade pact at the earliest opportunity, as relations recover.
What Happened
Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney spoke by phone on Tuesday, 13 October 2026, and reaffirmed their commitment to concluding a Comprehensive Economic Partnership Agreement (CEPA) between the two countries at the earliest opportunity. The leaders discussed trade, energy, technology and security cooperation. Modi described the conversation in a post on X as warm and productive. No agreement was announced, and negotiations continue. The call came while a large Canadian trade mission, led by Maninder Sidhu, was visiting India, and amid reports that Modi could travel to Canada in December, a visit that both sides are said to see as a possible moment to sign the deal.
Key Facts
- Call: Narendra Modi and Mark Carney, 13 October 2026.
- Topics: trade, energy, technology and security.
- Main outcome: both leaders recommitted to concluding the CEPA at the earliest opportunity; no deal was announced.
- Goal: the two sides aim to roughly double bilateral trade by 2030.
- CEPA talks were formally launched in November 2025 at a meeting on the sidelines of the G20.
- A Canadian trade mission led by Maninder Sidhu was in India at the time of the call.
- Reports say Modi is expected to visit Canada in December 2026; this has not been officially announced.
Why It Matters
India and Canada are repairing a relationship that came close to breaking down. Ties were badly strained after 2023, when the Canadian government alleged that Indian agents were linked to the killing of a Khalistani separatist on Canadian soil, a charge India rejected. Since then, both sides have moved step by step to restore contacts, formally launching trade negotiations in November 2025 and sending trade delegations.
A trade agreement would be the clearest sign that the reset has worked. The leaders' talks covered energy and technology as well as trade, areas where the two economies have much to offer each other, and the size of the Canadian trade mission in India this month shows the business interest on the Canadian side.
The phone call itself did not change the substance of the negotiations, but it shows that the leaders are personally invested in a quick result. If Modi does travel to Canada in December, both governments will be under pressure to have a deal, or at least a substantial first stage, ready to sign. That gives negotiators a deadline to work towards over the next two months.
| Date | Step |
|---|---|
| 2023 | Relations break down over Canada's allegations, which India rejected |
| November 2025 | CEPA talks formally launched on the G20 sidelines |
| October 2026 | Canadian trade mission visits India; Modi-Carney call on 13 October |
| December 2026 (reported) | Possible Modi visit to Canada |
Impact
Short-term: Negotiators will try to close the remaining gaps in the CEPA text in the coming weeks. Businesses on both sides, including those on the Canadian trade mission, will look for early signals on tariffs and market access.
Long-term: A signed agreement would lower barriers to trade and investment, help the two countries towards their goal of doubling trade by 2030, and lock in the political repair of the relationship. For India, it would add another advanced economy to its growing list of trade partners.
Who is affected: Indian exporters, IT and services companies, students and professionals who move between the two countries, the large Indian community in Canada, Canadian energy, mining and farm exporters, and both governments.
Key Takeaway
Modi and Carney have pledged to finish the India-Canada CEPA at the earliest opportunity, a sign that the two countries' troubled relationship is moving firmly towards recovery.
Questions and Answers
What did Modi and Carney discuss on 13 October 2026?
The two prime ministers discussed trade, energy, technology and security, and reaffirmed their commitment to concluding the India-Canada Comprehensive Economic Partnership Agreement at the earliest opportunity.
Has India signed a trade deal with Canada?
Not yet. Negotiations on the CEPA, formally launched in November 2025, are continuing, and no agreement was announced after the call.
Is Modi visiting Canada?
Reports say Modi is expected to visit Canada in December 2026, but the visit has not been officially announced.
Why were India-Canada relations strained?
Relations broke down after 2023, when Canada alleged that Indian agents were linked to the killing of a Khalistani separatist in Canada. India rejected the allegation. Ties have been recovering since, with trade talks relaunched in November 2025.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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