India, Canada ink rare earth pacts, push FTA
New Delhi/Toronto, March 3 -- India and Canada on Monday firmed up agreements on critical minerals and the supply of uranium ore, and finalised the terms of reference for negotiations on a free trade deal, as Prime Minister Narendra Modi and his Canadian counterpart Mark Carney pledged to build on the normalisation of ties by expanding trade and deepening security cooperation.
Carney was on a four-day visit to India as part of efforts by the two sides to rebuild ties that went into a tailspin in 2023 after former PM Justin Trudeau alleged Indian government agents were linked to the killing of a Khalistani separatist. The rapprochement began when Modi met Carney on the margins of the G7 Summit in Canada last June and the two sides later unveiled a road map to reset the relationship.
Besides a memorandum of understanding (MoU) on the mining and processing of critical minerals, India's Department of Atomic Energy and Canada's Cameco, one of the world's largest publicly traded uranium companies, signed a $2.6-billion agreement for the supply of 22 million pounds of uranium ore during 2027-2035. The two sides reiterated plans to increase two-way trade, with Modi and Carney emphasising the importance of bolstering commerce and investments by concluding a trade deal within the year.
"Since our first meeting, our relations have been filled with new energy, mutual trust and positivity. I credit my friend PM Carney for the growing momentum in every area of cooperation," Modi said at a joint media interaction, speaking in Hindi.
"Our goal is to reach $50 billion in trade by 2030. Unlocking the full potential of economic cooperation is our priority. Therefore, we have decided to finalise the Comprehensive Economic Partnership Agreement (CEPA) soon," Modi said.
Carney, the first Canadian PM to visit India in eight years, backed stronger trade and defence ties in a world witnessing "profound transformation". Speaking in French, he said: "Like India, we know that the certainties that have structured trade, security, finance and diplomacy for more than a generation have been overturned."
The two countries, Carney said, aim to conclude the CEPA "by the end of this year" to "reduce barriers, increase certainty, unlock opportunity for exporters, investors and workers".
A little more than a month after his speech at the World Economic Forum in Davos that called for "middle powers" to join hands to counter great power rivalry, Carney said India and Canada are expanding a "valued partnership" to chart their own course for the future. Nostalgia is not a strategy and countries with the partnerships to "build a more inclusive, sustainable and prosperous future" will succeed in this new era, he said.
Modi noted that Canada's pension funds have invested $100 billion in India, reflecting their "deep belief" in the country's growth, while Carney said these funds have $2 trillion dollars in capital and see potential for growth, especially in infrastructure.
Bilateral trade in goods was worth Canadian $13.32 billion in 2024, while bilateral trade in services was valued at Canadian $19.61 billion in the same period. The two sides had called off talks on a free trade agreement shortly before relations cratered when Trudeau alleged the Indian side was involved in the killing of Hardeep Singh Nijjar, who had been designated a terrorist by New Delhi.
India dismissed the accusations as "absurd" and the two sides curtailed their visa regimes and expelled dozens of diplomats as ties deteriorated....
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