Both countries are working to finalise a comprehensive trade agreement by the end of 2026.
The proposed pact aims to boost trade, investment and economic cooperation.
Highlights
- India and Canada have completed three rounds of CEPA negotiations.
- The government is targeting the end of 2026 to conclude the agreement.
- Talks focus on trade, investment and reducing tariff barriers.
- Negotiations are progressing under the current diplomatic framework.
- CEPA is expected to strengthen economic and people-to-people ties.
- The agreement could unlock significant bilateral trade opportunities.
India and Canada have made steady progress in negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA), with both countries aiming to conclude the trade pact by the end of 2026. Three rounds of negotiations have already been completed, the Ministry of External Affairs (MEA) informed Parliament.
Minister of State for External Affairs Kirti Vardhan Singh, in a written reply to the Rajya Sabha, said that the latest round of negotiations was held in Ottawa from July 6 to 10. According to the government, discussions have advanced across multiple negotiating tracks, reflecting renewed momentum in bilateral economic engagement.
The proposed CEPA seeks to establish a comprehensive free trade framework by reducing or eliminating tariffs and other trade barriers. It also aims to liberalise trade in goods and services, promote investment, create a more transparent and predictable business environment, and strengthen economic cooperation between the two countries.
The agreement is expected to enhance not only trade and investment but also deepen people-to-people ties between India and Canada. With Canada’s market of over 41 million people and an economy valued at around $2.34 trillion, the pact is seen as offering significant opportunities for Indian exporters and businesses.
India and Canada already share strong commercial ties. Bilateral trade reached $8.66 billion in 2024-25, with India’s exports accounting for $4.22 billion and imports from Canada at $4.44 billion. Officials believe that a comprehensive trade agreement can substantially increase this trade volume over the coming years.
The negotiations also signal an improvement in bilateral relations after a period of diplomatic challenges. If finalised, CEPA is expected to provide businesses in both countries with greater market access, improved investment opportunities and a more stable trade framework, supporting long-term economic growth.
