Canada, India to launch trade talks as ties thaw

Toronto, Canada: Canada and India have agreed to launch talks on a new free trade agreement, Prime Minister Mark Carney said, the latest sign of thawi...

Toronto, Canada: Canada and India have agreed to launch talks on a new free trade agreement, Prime Minister Mark Carney said, the latest sign of thawing relations between the countries after a bitter fallout.

Carney's office announced the talks after meeting Indian Prime Minister Narendra Modi on Sunday on the sidelines of the G20 summit in South Africa.

Relations had deteriorated following Canadian accusations that New Delhi was involved in the 2023 assassination of a Canadian Sikh leader -- claims which India denied.

The diplomatic rift severely disrupted consular and trade services between the nations, which exchanged about $20 billion (CAN$28 billion) in goods and services in 2023.

Since replacing Justin Trudeau in March, Carney has said Canada needs to expand its trading relations with partners overseas to reduce reliance on the United States, which has imposed punishing tariffs on key Canadian sectors.