India and Canada aim to conclude their proposed Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, according to the Ministry of External Affairs (MEA). In a written reply to the Rajya Sabha, Minister of State for External Affairs Kirti Vardhan Singh said on Friday that three rounds of CEPA negotiations have been held so far, with the latest round taking place in Ottawa from July 6-10. The announcement sets a clear timeline for a trade pact that officials say could significantly expand bilateral commerce between the two countries.
Negotiation Status and Timeline
According to the Economic Times, the MEA's written reply confirmed that both sides are working toward concluding the negotiation process by late 2026. The latest round of talks was held in Ottawa from July 6-10, marking the third round of CEPA discussions so far.
In the written reply, Singh said:
Progress has been made across multiple negotiating tracks, with both sides working towards concluding the process by late 2026.
The minister's statement indicates active progress across several negotiation tracks, although the written reply did not specify which tracks have advanced. The source also noted that Prime Minister Narendra Modi plans to visit Canada later this year to give further momentum to bilateral ties, which have improved under the current dispensation in Ottawa.
Scope of the Proposed India-Canada CEPA
The MEA said the proposed India-Canada CEPA aims to establish a free trade area by eliminating or reducing tariffs and other trade restrictions. According to the ministry, the agreement is also intended to:
- Progressively liberalise trade in goods and services
- Promote a more transparent, predictable and facilitative trade and investment regime
- Strengthen economic cooperation and people-to-people ties
These objectives, as stated by the MEA, position the agreement as a comprehensive framework covering tariff reduction, regulatory transparency, investment facilitation, and deeper economic engagement between the two countries.
Bilateral Trade and Market Context
India-Canada bilateral trade stood at $8.66 billion in 2024-25, comprising exports worth $4.22 billion from India and imports of $4.44 billion, according to an official. The official's figures, reported by the Economic Times, provide the latest annual snapshot of the bilateral trade relationship.
| Trade Metric (2024-25) | Value |
|---|---|
| Total bilateral trade | $8.66 billion |
| India's exports to Canada | $4.22 billion |
| India's imports from Canada | $4.44 billion |
The source also provides the size of the Canadian market: Canada represents a market of 41.65 million people, as of 2025, and $2.34 trillion in GDP in terms of purchasing power parity. These figures underline the potential scale of the market for Indian exporters if the CEPA is concluded.
Political Momentum Behind the Pact
The MEA's update comes alongside plans for Prime Minister Modi to visit Canada later this year, a move intended to give further momentum to bilateral ties. The MEA statement was delivered as a written reply in the Rajya Sabha.
With negotiations targeting completion by end-2026, importers and exporters on both sides will monitor upcoming rounds for concrete progress on tariff elimination and services liberalisation. The proposed CEPA's stated objectives — reducing tariffs, liberalising goods and services, and creating a more transparent and predictable trade regime — could reshape the $8.66 billion bilateral trade relationship once the agreement is finalised.
Sources:
