India and Canada Begin Fourth Round of CEPA Talks to Expand Bilateral Trade
India and Canada have begun the fourth round of negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA), as both countries work towards deepening their economic relationship and expanding bilateral trade. The five-day discussions, being held in New Delhi from September 14 to 18, come at an important stage as both sides aim to conclude the negotiations by the end of 2026.
Focus on Key Areas of Trade
The latest round of negotiations is covering important areas such as trade in goods and services, rules of origin and technical barriers to trade. These discussions are significant because the eventual agreement is expected to provide businesses in both countries with greater market access and a more predictable trading environment.
The negotiations follow the third round held in Ottawa in July. Earlier discussions had already covered a broad range of subjects, including intellectual property, sanitary and phytosanitary measures, services and rules of origin. The two countries are now seeking to build on that progress and resolve outstanding issues.
Ambitious Trade Targets
India and Canada have set ambitious targets for expanding their economic partnership. India has stated an objective of increasing bilateral trade to US$50 billion by 2030, while a joint India-Canada statement has also referred to a broader target of CAD 70 billion by 2030. Both governments have committed to completing CEPA negotiations by the end of 2026.
The proposed agreement could provide a stronger foundation for trade in areas where both economies have complementary strengths. A comprehensive framework covering goods, services and other economic areas could also encourage greater investment and strengthen supply-chain cooperation.
Current Trade and Areas of Opportunity
Despite the potential for expansion, bilateral trade remains considerably below the long-term targets. During 2025-26, India-Canada two-way trade stood at around US$7.95 billion, compared with US$8.66 billion in the previous financial year. India's major exports to Canada include pharmaceuticals, iron and steel, seafood, textiles, electronics and chemicals. Canada supplies India with products including pulses, coal, fertilisers, paper, crude oil and precious and semi-precious stones.
The relatively modest trade volume also indicates the scope available for both countries to broaden their commercial engagement. Services, particularly telecommunications, computer and information services and other business services, represent another important area of India's exports to Canada.
Critical Minerals, Technology and Clean Energy
The CEPA discussions are taking place alongside a broader expansion of economic cooperation. During high-level engagements earlier this year, India and Canada identified sectors such as clean energy, critical minerals, advanced manufacturing, digital technologies, pharmaceuticals, biotechnology, aerospace and agriculture as areas with significant potential.
Critical minerals could become particularly important as both countries seek reliable and diversified supply chains. Cooperation in clean technologies, advanced manufacturing and digital industries could similarly create opportunities for investment, research and development and long-term industrial partnerships.
A Broader Economic Partnership
The renewed focus on trade is part of wider efforts to strengthen India-Canada relations. In September, officials from both countries held Foreign Office Consultations and reviewed cooperation in energy and critical minerals, science and technology, education, security and defence, culture and people-to-people ties. The two sides reaffirmed their commitment to completing the CEPA negotiations before the end of the year.
The economic relationship also has an important people-to-people dimension. Canada has a large Indian-origin community and hosts more than 425,000 Indian students, creating substantial links in education, professional services and business.
The Road Ahead
Reaching a final agreement will require both countries to carefully address sensitive issues related to market access, technical regulations, agricultural trade and rules of origin. Canadian consultations have also highlighted the importance of ensuring that any agreement delivers commercially meaningful outcomes while protecting sensitive domestic sectors.
For India, a successful CEPA could open additional opportunities for exporters and service providers while strengthening access to Canadian resources, investment and technology. For Canada, deeper engagement with India's large and growing market could support export diversification and create new opportunities for Canadian businesses.
The MGMM Outlook
India and Canada’s renewed push to advance CEPA negotiations signals an important opportunity to strengthen bilateral economic ties. With discussions covering goods, services, rules of origin, technology and critical minerals, the agreement could create wider market opportunities for Indian exporters and service providers while giving Canada greater access to India’s expanding economy. The relatively modest level of current bilateral trade compared with the targets also shows how much room remains for both sides to expand commercial engagement.
The focus on clean energy, critical minerals, advanced manufacturing, digital technologies, pharmaceuticals and other emerging sectors can give the partnership a broader and more future-oriented foundation. If both countries are able to address sensitive issues and reach a balanced agreement, CEPA could encourage greater investment, diversify supply chains and strengthen cooperation beyond traditional trade. The negotiations therefore represent a significant step towards building a more stable and mutually beneficial India-Canada economic relationship.
(Sources: The Hindu BusinessLine, News On AIR, Economic Times)
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