At the G7 Summit, India and Canada have agreed to fast-track negotiations on the Comprehensive Economic Partnership Agreement (CEPA) and set a target to double their bilateral trade by 2030. The announcement was made on Tuesday, June 16, 2026, following a meeting between Indian Prime Minister Narendra Modi and Canadian Prime Minister Justin Trudeau on the sidelines of the summit.
Key Agreements Reached
The two leaders also agreed to launch negotiations on a General Security of Information Agreement (GSOIA). This agreement is expected to clear the way for further deepening defence and security cooperation between the two nations. The GSOIA will facilitate the sharing of classified information, enhancing mutual trust and collaboration in security matters.
Trade Targets and Economic Impact
The target to double bilateral trade by 2030 reflects the growing economic partnership between India and Canada. Currently, bilateral trade stands at approximately $8 billion annually. The fast-tracked CEPA talks aim to reduce tariffs, enhance market access, and boost investments in sectors such as agriculture, energy, and technology.
Both countries have expressed optimism about the potential for increased trade flows. Canada is a key source of pulses, potash, and aerospace technology for India, while India offers a large market for Canadian goods and services. The CEPA is expected to create new opportunities for businesses and workers in both countries.
Defence and Security Cooperation
The GSOIA negotiations mark a significant step in India-Canada defence ties. The agreement will enable the exchange of sensitive information, which is crucial for joint military exercises, intelligence sharing, and counter-terrorism efforts. This move aligns with India's broader strategy to strengthen security partnerships with like-minded nations.
Prime Minister Modi emphasized the importance of deepening strategic ties with Canada, particularly in the Indo-Pacific region. Prime Minister Trudeau echoed this sentiment, highlighting Canada's commitment to working with India on regional security and economic prosperity.
Context of the G7 Summit
The G7 Summit, hosted in Italy this year, brought together leaders from major industrialized democracies. India was invited as a guest country, reflecting its growing global influence. The meeting between Modi and Trudeau was one of several bilateral engagements on the sidelines of the summit.
India and Canada have been working to strengthen their relationship in recent years, with trade and security being key pillars. The agreements reached at the G7 Summit are expected to give a significant boost to bilateral ties.
