India and Canada have started the fourth round of CEPA negotiations in New Delhi, with both countries aiming to conclude the proposed trade agreement by the end of 2026.
Highlights
- India and Canada have begun the fourth round of CEPA negotiations.
- The five-day round is being held in New Delhi.
- Both countries aim to conclude negotiations by the end of 2026.
- Talks cover goods, services, rules of origin and technical trade barriers.
New Delhi: India and Canada have opened the fourth round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) as the two countries seek to conclude the long-awaited trade pact by the end of 2026.
The five-day round of negotiations is taking place in New Delhi and follows the third round held in Ottawa in July.
Discussions during the latest round are expected to cover several key areas, including trade in goods and services, rules of origin and technical barriers to trade.
The renewed momentum follows a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney in New Delhi in March. During the meeting, the two leaders agreed to work towards completing CEPA negotiations by the end of the year while expanding cooperation in areas such as energy and critical minerals.
C$70 Billion Trade Target by 2030
India and Canada have set an ambitious target of increasing bilateral trade to Canadian $70 billion, or around Rs 4.65 lakh crore, by 2030.
A comprehensive trade agreement is expected to provide a stronger framework for expanding economic ties between the two countries and improving market access for businesses.
Bilateral trade in goods stood at approximately $8.66 billion in 2024-25, with India’s exports to Canada accounting for around $4.22 billion.
India’s major exports to Canada include pharmaceuticals, machinery components, iron and steel products, electronics, organic chemicals, jewellery and gemstones, garments, seafood, engineering products and auto components.
Canada, meanwhile, supplies India with products including pulses, fertilisers, mineral fuels, wood pulp, precious stones, aircraft parts, machinery and metal scrap.
India’s IT industry is also a major contributor to the country’s services exports to Canada.
Trade Talks Gain Momentum
The negotiations are taking place as diplomatic and economic engagement between India and Canada improves after a period of strained relations.
The latest round will be important for addressing remaining differences over market access for goods and services and other trade-related rules.
If negotiations progress according to schedule, both governments will seek to finalise the CEPA before the end of 2026, potentially creating a broader framework for trade, investment and economic cooperation between the two countries.
