India and Canada Hold the Fifth Round of CEPA Talks: Aiming for a Trade Deal by End-2026
India and Canada are holding the fifth round of talks for a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, from 5 to 9 October 2026.
The fourth round was held in New Delhi and ended on 18 September 2026. Both sides want to finish the agreement by the end of 2026.
Canada's Minister of International Trade is due to visit New Delhi later in October with a business delegation of about 300 members. A visit by India's Prime Minister to Canada is expected around December.
A CEPA is a kind of free trade agreement: both sides cut or remove customs duties on most goods, and also open up services, investment and the movement of skilled professionals.
India-Canada goods trade fell 8.23% to US$7.95 billion in 2025-26. India's exports rose 10.63% to US$4.67 billion, while imports from Canada fell 26.14% to US$3.28 billion.
India-Canada Relations: History, Rupture and Reset
India and Canada are two large democracies, both members of the Commonwealth and the G20, linked by one of the world's largest Indian diasporas. Their relationship has seen long friendly periods and sharp breakdowns. The worst recent breakdown came in 2023, after Canada alleged a possible Indian link to the killing of Hardeep Singh Nijjar in Canada, which India rejected as absurd. Since mid-2025, both sides have been rebuilding ties step by step.
The fifth round of CEPA talks shows how far the relationship has recovered since the 2023 freeze. A signed CEPA would be the clearest sign that the reset is complete, and would give both countries a new trade partner at a time when US tariffs are disrupting world trade.
Free Trade Agreements: Concept and WTO Framework
A Free Trade Agreement (FTA) is a deal between two or more countries to remove or sharply cut import taxes (tariffs) on most of the goods they trade with each other, while each keeps its own tariffs for outside countries. Modern FTAs also cover services, investment, digital trade and rules on standards. In India, the bigger, wider deals are often called CEPA (Comprehensive Economic Partnership Agreement) or CECA (Comprehensive Economic Cooperation Agreement), but legally they are all FTAs.
The proposed India-Canada CEPA would cover goods, services, investment and the movement of professionals. Talks in rounds like this fifth one decide the tariff schedules, sensitive lists and rules of origin that will shape what each side actually gains.
- Fifth round of India-Canada CEPA talks: Ottawa, 5 to 9 October 2026
- Fourth round: New Delhi, ended 18 September 2026
- Target: conclude the CEPA by the end of 2026
- Bilateral goods trade 2025-26: US$7.95 billion (down 8.23% from US$8.7 billion in 2024-25)
- India's exports to Canada 2025-26: US$4.67 billion (up 10.63%); imports: US$3.28 billion (down 26.14%)
- Indian-origin population in Canada: about 2.9 million; Indian students: over 4,27,000
- Canadian FDI in India, April 2000 to June 2026: about US$4.8 billion
- Talks history: began 2010, stalled 2017, restarted March 2022 (with EPTA), paused 2023, restarted November 2025