India, Canada Advance CEPA Talks; Negotiations Targeted for Completion by End of 2026

Third round of CEPA negotiations records progress across multiple chapters as both countries aim to conclude the agreement and expand bilateral trade to $50 billion by 2030.

India and Canada concluded the third round of negotiations on the Comprehensive Economic Partnership Agreement (CEPA) last week (July 6–10), with progress reported across multiple issues. Both countries are hopeful of concluding the negotiations by the end of 2026.

Once the agreement is finalised, bilateral trade is expected to double to $50 billion by 2030.

According to the report, discussions advanced across multiple negotiating tracks, reflecting the shared commitment of both countries to complete the negotiations in 2026, in line with the vision of their leaders.

The Department of Commerce posted on X:

"Detailed discussions were held across a wide range of chapters, including trade in goods and services, intellectual property, rules of origin, sanitary and phytosanitary measures, and technical barriers."

The first round of negotiations was held in March after the finalisation of the terms of reference. The second round took place in May, when Commerce Minister Piyush Goyal visited Canada with a business delegation. During the visit, he met Prime Minister Mark Carney, Trade Minister Maninder Sidhu, and Foreign Minister Anita Anand to advance the negotiations.

This is the third attempt by India and Canada to negotiate the CEPA. Initial negotiations began in 2010 but did not achieve significant progress. A second round of negotiations was launched in March 2022, but the talks were suspended during August–September 2023 due to political differences. Discussions resumed after Mark Carney became Prime Minister of Canada in March this year.

Trade in goods and services between the two countries stood at $23.66 billion in 2024, with merchandise trade accounting for nearly $8.98 billion and the remainder coming from services.

In 2025–26, India's goods exports to Canada increased 10.63% to $4.67 billion, while imports declined 26.12% to $3.28 billion.

India's principal exports to Canada include pharmaceutical products, electronic goods, jewellery, gems and precious stones, seafood (shrimp), engineering goods, and auto parts.

Major imports from Canada include minerals, pulses, potash, paper and paperboard, wood pulp, iron and aluminium, and gemstones.

Canada's foreign direct investment (FDI) in India stands at $4.34 billion, while portfolio investments have crossed $75 billion.