India and Canada have successfully concluded the third round of negotiations for their proposed Comprehensive Economic Partnership Agreement (CEPA). Both countries remain committed to finalising the trade pact by the end of 2026.
Highlights:
- India and Canada concluded the third round of CEPA talks in Ottawa.
- Negotiations covered trade in goods, services, IP rights, and market access.
Both countries aim to conclude the agreement during 2026. - Bilateral trade target has been set at USD 50 billion by 2030.
- India-Canada trade stood at USD 7.95 billion in FY2025-26.
- Canada is home to over 4.25 lakh Indian students and a large Indian diaspora.
India and Canada have taken another significant step towards strengthening their economic relationship by successfully concluding the third round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA). The five-day negotiations were held in Ottawa from July 6 to July 10, with both countries reaffirming their commitment to finalise the trade agreement before the end of 2026.
According to the Department of Commerce, the latest round of discussions recorded positive progress across several negotiating areas, reflecting the shared determination of both governments to deepen trade and investment ties. The negotiations covered a broad range of subjects, including trade in goods and services, intellectual property rights, rules of origin, sanitary and phytosanitary measures, and technical barriers to trade.
The proposed CEPA is expected to become a comprehensive free trade agreement that will reduce trade barriers, improve market access for businesses, and create new opportunities for exporters, investors, and service providers in both countries.
One of the key objectives behind the agreement is to significantly expand bilateral trade. India and Canada have jointly set a target of increasing two-way trade to USD 50 billion by 2030. Although trade between the two nations remains strong, it witnessed a decline during FY2025-26. Bilateral trade fell 8.22% to USD 7.95 billion, compared with USD 8.66 billion in the previous financial year. India’s exports to Canada stood at USD 4.67 billion, while imports were valued at USD 3.28 billion.
Canada remains an important market for Indian exporters, with a population of over 41 million and one of the world’s largest advanced economies. India exports a wide range of products to Canada, including pharmaceuticals, iron and steel, seafood, cotton garments, chemicals, and electronic goods. In return, Canada supplies India with pulses, coal, crude petroleum, fertilisers, paper products, pearls, and semi-precious stones.
Apart from merchandise trade, services also play an important role in the bilateral relationship. India exports telecommunications, computer and information technology services, and various business services to Canada. The country is also home to more than 4.25 lakh Indian students and a vibrant Indian diaspora, making people-to-people ties another important pillar of the relationship.
The Indian negotiating team is being led by Joint Secretary in the Department of Commerce, Brij Mohan Mishra, while Bruce Christie is heading the Canadian delegation. With three rounds of negotiations now completed, both sides are expected to accelerate discussions in the coming months to conclude the agreement within the targeted timeline and unlock greater trade and investment opportunities.
