The decision followed a bilateral meeting between Prime Minister Mark Carney and Indian Prime Minister Narendra Modi on the sidelines of the G20 Summit in Johannesburg.

The Indian government confirmed that both leaders supported relaunching work toward a Comprehensive Economic Partnership Agreement. The goal is to build a high-ambition pact designed to boost economic engagement between the two countries.

Officials said the updated agreement aims to double bilateral trade to USD 50 billion by 2030. Canada indicated similar ambitions, projecting that trade could rise to more than C$70 billion if negotiations succeed.

Carney emphasized that India’s growing economic influence makes it a strategic market for Canada. He noted that deeper ties could bring substantial opportunities for Canadian industries and workers.

The talks represent a thaw in relations following a period of diplomatic tension. Negotiations were put on hold in 2023 after allegations from Canada about the death of a Sikh separatist strained ties.

New Delhi rejected those accusations, and both sides gradually reopened lines of communication over the past year. Improved diplomatic contact began earlier in 2025 during a meeting between both leaders at the G7 Summit.

Despite political tensions, trade between the two nations continued to grow modestly. However, experts say the overall trade volume remains small relative to the scale of India’s economy.

Two-way trade reached approximately C$31 billion in 2024, with Canada benefiting heavily from its large services exports. By comparison, Canada’s trade with China remains almost four times larger.

Both countries reiterated their longstanding civil nuclear cooperation as part of the renewed dialogue. They highlighted ongoing work on potential long-term uranium supply agreements to support energy needs.

Carney has committed to diversifying Canada’s trade footprint beyond the United States, its largest trading partner. He has pledged to double non-U.S. exports over the next decade by opening new markets and modernizing trade frameworks.

The revival of talks with India fits into Canada’s broader economic outreach strategy. Carney said he wants to establish predictable trade rules that protect businesses and encourage investment on both sides.

He explained that the potential agreement would include dispute resolution mechanisms, clear guidelines, and updated commercial protections. Such measures, he said, would help foster long-term confidence among companies operating between the two markets.

India, for its part, is seeking to expand its own global trade partnerships as its economy continues to grow rapidly. Officials in New Delhi view the renewed talks as an opportunity to strengthen ties with a major G7 economy.

The discussions also occur amid growing global interest in India as a supply-chain and investment destination. Both governments appear aligned in wanting to seize this moment for economic expansion.

Earlier in the day, Carney described India as a dependable trading partner, while acknowledging occasional friction. He stressed that establishing a robust agreement would help manage challenges and support sustainable cooperation.

Beyond India, Carney also met with Brazilian President Luiz Inácio Lula da Silva during the G20 Summit. Both leaders agreed to accelerate negotiations between Canada and Mercosur, which includes Brazil, Argentina, Paraguay, and Uruguay.

Expanding trade with Mercosur forms another important pillar of Canada’s diversification efforts. Carney said that stronger ties with fast-growing markets would help position Canada competitively in a shifting global economy.

As Canada and India prepare to restart negotiations, officials on both sides are working on updated frameworks. Their aim is to launch formal rounds of talks soon, building on the renewed momentum from recent diplomatic outreach.

While gold, copper, and oil prices showed mild pullbacks, positive sentiment across North American markets reflected optimism for steady growth heading into the final months of 2025.

Futures linked to the S&P/TSX Composite Index traded flat in early hours, indicating a balanced outlook for Canadian equities.

Analysts noted that the stability was largely supported by strong performance from U.S. tech giants Apple and Amazon, whose encouraging earnings reports boosted investor morale after a volatile week.

The recovery in Wall Street technology shares provided a positive backdrop for Canadian markets, which have maintained consistent gains over the past several months.

The Toronto Stock Exchange (TSX) has been on an impressive six-month winning streak — its longest since 2021.

Even as some sectors faced weekly declines, such as consumer staples and real estate, the broader market continued to demonstrate strength, supported by financial, industrial, and mining shares.

This consistent performance highlights the TSX’s resilience amid shifting global conditions and fluctuating commodity prices.

Commodity-linked stocks, a key component of Canada’s economy, experienced minor setbacks as gold and copper retreated slightly due to a stronger U.S. dollar and increased global oil supply.

However, these short-term dips were balanced by investor optimism surrounding corporate growth, lower interest rates, and Canada’s expanding trade relationships.

Economists noted that the recent decision by the Bank of Canada to cut interest rates to a three-year low has added momentum to domestic investment and borrowing, boosting confidence among businesses and consumers alike.

Adding to the positive sentiment, Canadian Prime Minister Mark Carney met with Chinese President Xi Jinping in a move that marked a new chapter in bilateral relations.

The meeting, held during an Asia-Pacific leaders’ summit, signaled a desire to rebuild economic and diplomatic engagement between Canada and China after several years of strained relations.

Speaking to a gathering of business executives, Prime Minister Carney announced Ottawa’s goal to double its non-U.S. exports over the next decade — a vision that aligns with Canada’s long-term strategy to diversify trade and strengthen global partnerships.

This renewed focus on international collaboration was welcomed by investors, who view market diversification as crucial to reducing reliance on a single trading partner.

With trade opportunities expanding in Asia, Europe, and the Middle East, Canada is positioning itself as a proactive global player ready to embrace economic innovation and sustainable growth.

Meanwhile, corporate developments also contributed to a positive market tone. Mexican precious metals company Fresnillo announced its acquisition of Canada’s Probe Gold for C$780 million ($556 million) in cash.

The deal reflects growing international confidence in Canadian mining assets and reinforces the nation’s reputation as a stable and attractive destination for global investors in the natural resources sector.

Despite fluctuations in commodity prices, the TSX Composite Index remains on track for a modest monthly gain of around 0.5%, underscoring investor confidence in Canada’s economic fundamentals.

Market analysts predict that lower borrowing costs, improving trade ties, and robust U.S. market performance will continue to support Canada’s economic outlook in the coming months.

As the year draws to a close, attention is turning toward the long-term growth potential of Canada’s diversified economy. The continued success of technology, manufacturing, and green energy industries, coupled with stable financial markets, reflects a solid foundation for sustained prosperity.

Overall, the mood across Canadian markets remains cautiously optimistic. While global challenges persist — from fluctuating commodity prices to international trade adjustments — Canada’s steady leadership, strong policy direction, and ongoing international partnerships signal a positive trajectory for 2026 and beyond.

Through balanced growth, strategic diversification, and an unwavering commitment to innovation, Canada continues to demonstrate its resilience and leadership in an interconnected global economy.