India and Canada are working to accelerate negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA), with both sides aiming to complete the trade pact by the end of 2026.
Commerce and Industry Minister Piyush Goyal said he held a productive meeting with Canada’s Minister of International Trade, Maninder Sidhu, in New Delhi on September 18. The discussions focused on advancing negotiations and creating greater opportunities for businesses in both countries.
Following the meeting, Goyal said the two countries had reaffirmed their leadership’s commitment to moving the negotiations forward and reaching an agreement at the earliest possible opportunity. The proposed CEPA is expected to cover several areas, including trade in goods and services as well as investment.
India and Canada began their fourth round of CEPA negotiations in New Delhi this week. The five-day discussions include issues such as market access for goods and services, rules of origin and technical barriers affecting trade.
The latest round follows the third phase of negotiations, which was held in Ottawa in July. The two countries are seeking to maintain momentum as they work toward the year-end deadline established by their leaders.
Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney agreed in March to target completion of the CEPA negotiations by the end of 2026. During their meeting in New Delhi, the leaders also discussed expanding cooperation in areas including energy and critical minerals.
The proposed agreement comes amid existing commercial ties between the two economies. India and Canada recorded approximately $8.66 billion in bilateral goods trade during the 2024-25 financial year. India’s exports to Canada accounted for around $4.22 billion during the period.
Indian exports to Canada span a diverse range of products. Key categories include pharmaceuticals, machinery and mechanical equipment, iron and steel products, electronics, organic chemicals, jewelry, gems and precious stones, clothing and textiles, seafood, engineering products and automobile components.
India also imports a variety of goods from Canada, including pulses, fertilizers, mineral fuels, wood pulp, gems and precious stones, aircraft components, machinery and metal scrap. In services, India’s information technology sector remains a significant contributor to exports to the Canadian market.
An early conclusion of the CEPA could provide a framework for expanding commercial engagement between the two countries. Both governments have expressed interest in increasing bilateral trade while creating additional opportunities for businesses and investors.
The ongoing negotiations therefore remain a key component of efforts to strengthen the broader India-Canada economic relationship.
