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India and Canada Agree to Conclude Free Trade Pact Negotiations by End of 2026

Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met on the sidelines of the G7 Summit in Evian-les-Bains, France, and reaffirmed their shared objective of concluding negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026. The two leaders also agreed to launch talks on a General Security of Information Agreement to deepen defence cooperation. The meeting builds on positive momentum following Carney's visit to India in March 2026.

iG
iGEN Editorial
June 17, 2026
India and Canada Agree to Conclude Free Trade Pact Negotiations by End of 2026

Indian Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney met on June 17, 2026, on the sidelines of the G7 Summit in Evian-les-Bains, eastern France, and reaffirmed their commitment to finalise a free trade agreement by the end of this year, according to the Ministry of External Affairs (MEA).

"It was a delight to meet Prime Minister Carney on the sidelines of the Evian G7 Summit," Modi posted on X, noting that it was their fourth meeting in less than a year, demonstrating their commitment to strong India-Canada ties.

Comprehensive Economic Partnership Agreement (CEPA) Timeline

During the bilateral meeting, the two leaders expressed satisfaction with the progress of negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) and reaffirmed their shared objective of concluding the negotiations in 2026, the MEA stated. Both sides highlighted the complementarities between the Indian and Canadian economies and stressed the importance of resilient and reliable supply chains for global energy and food security.

Aspect Detail
Agreement Comprehensive Economic Partnership Agreement (CEPA)
Target conclusion 2026
Leaders PM Narendra Modi (India), PM Mark Carney (Canada)
Meeting venue G7 Summit, Evian-les-Bains, France
Date June 17, 2026

Defence and Security Cooperation

Modi and Carney also agreed to launch negotiations on a General Security of Information Agreement, aimed at deepening defence and security cooperation. This builds on earlier pledges, as noted during Carney's visit to India from February 27 to March 2, 2026, when the two sides sealed key pacts on supplies of Uranium and critical minerals and agreed to conclude a comprehensive economic partnership agreement soon.

Progress Since Carney's India Visit

The leaders reviewed progress in economic cooperation, including commercial arrangements relating to LNG, LPG, and metallurgical coal. During Carney's visit to India, the two prime ministers pledged to ramp up cooperation in defence, critical technologies, small and modular nuclear reactors, education, and renewable energy. The MEA statement noted that both sides welcomed the positive momentum in bilateral relations and the progress achieved since Carney's visit to India in March 2026.

Broader Institutional Engagement

Modi and Carney welcomed growing institutional engagement, including recent meetings of the Joint Science and Technology Committee and the Consular Dialogue. They looked forward to dialogues in defence, finance, and migration. The leaders also noted ongoing collaboration under the Canada-India Talent and Innovation Strategy and announced the establishment of Raisina Americas as a platform to further strengthen dialogue, exchanges and cooperation. Modi expressed support for Canada becoming a Dialogue Partner of the Indian Ocean Rim Association, according to the MEA statement.

Background: Rebuilding Bilateral Relations

The ties between India and Canada hit a low point following then-prime minister Justin Trudeau's allegations in 2023 of a potential Indian link to the killing of Khalistani terrorist Hardeep Singh Nijjar in Canada. However, the two sides initiated a series of measures to rebuild relations after Carney became prime minister in March 2025. The current meeting marks a continuation of the positive trajectory in bilateral ties.

For importers and exporters, the reaffirmed commitment to conclude CEPA by 2026 signals potential tariff reductions and improved market access. The agreement is expected to cover goods, services, and investment, benefiting sectors such as energy, critical minerals, and technology. Businesses should monitor the progress of negotiations and prepare for possible changes in customs procedures and trade rules.


Sources: Industries

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