New Delhi (Gurpreet Singh): India and Canada are working to conclude a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, as both countries seek to rebuild economic ties following a period of diplomatic tensions.
The proposed trade pact was discussed by External Affairs Minister S Jaishankar and Canadian Foreign Minister Anita Anand during their meeting on the sidelines of the G20 Foreign Ministers’ Meeting in Atlanta on October 30.
Anand welcomed the progress in negotiations, while the two ministers discussed advancing priorities under the joint roadmap. The proposed agreement is expected to expand trade and investment between the countries.
The negotiations are gaining importance ahead of Prime Minister Narendra Modi’s proposed visit to Canada in December. The ministers agreed that the visit would serve as another step in strengthening the expanding bilateral relationship and decided to remain in close contact ahead of it.
India-Canada Trade Deal: What Is the $70 Billion Target?
Canada has set a target of doubling bilateral trade with India to $70 billion by 2030.
According to Canadian government figures, two-way merchandise trade between the countries stood at $13.6 billion in 2025. When trade in goods and services is included, the figure reached $30.4 billion.
The proposed CEPA is intended to provide a framework for expanding commercial engagement and investment flows between the two economies.
India-Canada CEPA Negotiations: From 2015 Talks to Diplomatic Freeze
India and Canada first began negotiations for a Comprehensive Economic Partnership Agreement in 2015. Several rounds of discussions were held, but the process subsequently lost momentum.
The negotiations were revived in March 2022, initially with a proposed interim trade agreement. However, they were put on hold in September 2023 after bilateral relations deteriorated following the killing of Khalistani separatist Hardeep Singh Nijjar in Canada.
The two countries agreed to formally launch negotiations for a fresh CEPA in November 2025, when Modi met Canadian Prime Minister Mark Carney on the sidelines of the G20 Summit in Johannesburg.
The fifth round of negotiations was held in Ottawa from October 5 to 9, 2026.
What Will the India-Canada Economic Partnership Agreement Cover?
The proposed agreement covers several areas of economic cooperation, including:
- Trade in goods and services
- Rules of origin
- Intellectual property
- Sanitary and phytosanitary measures
- Technical barriers to trade
The ministers also welcomed the renewed momentum in the India-Canada Strategic Partnership, pointing to Anand’s visit to India on October 13-14 and other high-level engagements over the past year.
The proposed December visit by Modi is expected to provide another opportunity to advance bilateral engagement, as both governments work towards concluding the trade negotiations.
