ENA Global 2025-06-19 14:54:01 <p><span style="font-size:14px"><strong>New Delhi, Jun 19 (KNN)</strong> India and Canada have agreed to resume stalled negotiations on a free trade agreement (FTA), marking a significant step towards restoring diplomatic and economic engagement following a period of strained bilateral relations. </span></p> <p><span style="font-size:14px">The decision was made during the first meeting between Indian Prime Minister Narendra Modi and newly appointed Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in Kananaskis, Canada.</span></p> <p><span style="font-size:14px">The Ministry of External Affairs (MEA) confirmed in a statement that both leaders agreed to begin normalising ties by facilitating the early return of High Commissioners to New Delhi and Ottawa. </span></p> <p><span style="font-size:14px">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), the MEA said.</span></p> <p><span style="font-size:14px">Discussions also covered a wide range of potential areas for collaboration, including clean energy, digital transformation, liquefied natural gas (LNG), food security, critical minerals, higher education, mobility, and supply chain resilience.</span></p> <p><span style="font-size:14px">Trade talks between the two nations were suspended in September 2023, shortly before India hosted the G20 Summit. </span></p> <p><span style="font-size:14px">The shift in tone comes amid changing global trade dynamics, including rising protectionism in the United States under President Donald Trump. </span></p> <p><span style="font-size:14px">Canada, as the second-largest exporter to the U.S. after China, has been particularly affected by Washingtons policies, prompting Ottawa to explore broader trade alliances.</span></p> <p><span style="font-size:14px">Despite political tensions, bilateral trade has remained resilient. Merchandise trade between India and Canada grew modestly from USD 8.3 billion in FY2023 to USD 8.4 billion in FY2024. </span></p> <p><span style="font-size:14px">India's exports to Canada rose 9.8 percent year-on-year to USD 4.2 billion in FY2024 25, while imports from Canada declined 2.3 percent to USD 4.4 billion. </span></p> <p><span style="font-size:14px">Currently, over 600 Canadian companies operate in India, and more than 1,000 Canadian firms are actively engaged in the Indian market. </span></p> <p><span style="font-size:14px">The agreement to resume trade talks is seen as a pragmatic step towards rebuilding a multifaceted economic and strategic partnership.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 42500 https://knnindia.co.in/news/newsdetails/global/india-canada-to-restart-fta-talks-move-to-normalise-diplomatic-ties 2025-06-19 14:54:01 knnindia.co.in