Trade deal with Canada by November; European Union pact by year-end
New Delhi, Jun 18, 2026
Modi's meetings with leaders attending the G7 Summit, and his intervention at the outreach session focused on furthering trade and connectivity projects
The India-European Union (EU) trade deal will be formally signed by the end of the year, and the two sides will accelerate work on an investment agreement, European Commission President Ursula von der Leyen said on Wednesday after her meeting with Prime Minister (PM) Narendra Modi on the sidelines of the Group of Seven (G7) Summit in Evian, France.
Meanwhile, Canadian PM Mark Carney on Wednesday said his country’s trade deal with India will be concluded by November before the G20 Summit. India and Canada concluded the negotiations for their Comprehensive Economic Partnership Agreement (Cepa), and have set a bilateral trade target of $50 billion by 2030. Sources said the two sides are working to finalise Modi’s visit to Canada by the end of the year, when the pact is likely to be signed. Modi and Carney met on the sidelines of the G7 Summit on Tuesday, where they reviewed progress in bilateral commercial arrangements relating to liquefied natural gas (LNG), liquefied petroleum gas (LPG), and metallurgical coal.
Modi’s meetings with leaders attending the G7 Summit, and his intervention at the outreach session focused on furthering trade and connectivity projects. In his intervention during one of the sessions at the Summit, the PM said: “Disruptions to fuel, fertiliser, and food supply chains caused by the crisis in West Asia will continue to have a significant impact on the Global South for some time.” “If we are truly committed to strengthening international solidarity, the most vulnerable countries should not be left to bear the burden of these crises alone,” he said, urging international financial institutions to develop support mechanisms that help developing countries absorb such shocks and sustain their economic resilience.
On Tuesday, the PM held bilateral meetings with Starmer, Canadian PM Mark Carney, and UAE President Sheikh Mohamed bin Zayed Al Nahyan. On Wednesday, the concluding day of the Summit, Modi met von der Leyen and European Council President Antonio Costa. He also held bilateral meetings with German Chancellor Friedrich Merz and US President Donald Trump.
During his intervention in the session on “Reviving a balanced, shared and sustainable economic growth for all”, Modi underlined the disruptions to the global economy, including to energy supplies that the conflict in West Asia has caused. He proposed that India could work on connectivity projects with countries in Africa, Latin America, and the Pacific Island region, and these projects could draw inspiration from the India-Middle East-Europe Economic Corridor (IMEC).
Modi said that by bringing together the economic resources of the G7, the talent of India, and the ownership of countries across the Global South, “we may consider establishing International Mobilisation Partnership for Accelerating Connectivity and Trade (IMPACT)”.
The PM lauded France’s G7 Presidency for giving special importance to inclusive and sustainable growth “at a time when the world faces many challenges and uncertainties”. He said the question of growth is not limited to gross domestic product (GDP) numbers or trade figures alone. “The real question is: Who benefits from this growth? Who is included in it? And what direction is it taking,” he said.
On IMEC, Modi said the strategic corridor connects Asia, the Middle East, and Europe, and will accelerate trade, strengthen supply chains, and create new opportunities for investment, employment, and innovation across partner countries. Today, there is a need to further advance such initiatives, ones that are characterised by local ownership, transparent financing, and a clear vision for long-term sustainability, he said. While Modi did not mention China’s Belt and Road Initiative, it has faced flak for its unsustainable debt burdens and lack of transparency.
The PM said developed countries, which are confronting the challenge of ageing populations, and the Global South, including India, which possesses talent, enterprise and skills, should harness this natural complementarity. “We may consider establishing a Global Skills Partnership. Under this framework, we can work together on skill-mapping and promoting trusted skilled mobility,” he said. Modi said India has concluded trade deals with most of the countries represented at the G7 Summit. “This reflects India’s belief not in fragmentation, but in integration, not in protectionism, but in partnership, and not in uncertainty, but in shared prosperity.”
Bilateral meetings
After Modi’s meeting with the EU leaders, von der Leyen posted on social media, “Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year. And accelerate work on an investment agreement. We will also step up security and defence cooperation. And join forces for better connectivity by advancing IMEC.” India and the EU announced concluding negotiations for the mega trade deal on January 27.
In Modi’s meeting with the UAE President on Monday, the two leaders discussed the West Asian conflict and called for continued free, safe, and unimpeded navigation, and trade and commerce through the Strait of Hormuz. Modi invited the UAE leader to attend the Brics Summit, which India will host in September.
Modi and German Chancellor Merz discussed shoring up bilateral cooperation in areas of trade, investments, and defence, and also exchanged views on the situation in West Asia and the Russia-Ukraine conflict. They welcomed the understanding reached between the US and Iran to end the conflict in West Asia. They welcomed the signing of the Defence Industrial Cooperation Roadmap and the operationalisation of transit visa waiver for Indian nationals transiting through Germany.
[The Business Standard]
