India-Canada trade deal by the end of the year, Canadian High Commissioner Cooter says
Canada's High Commissioner to India confirmed that the India-Canada Comprehensive Economic Partnership Agreement (CEPA) negotiations are on track for conclusion by the end of 2026
A visit by the Prime Minister of India to Canada is planned for December, expected to coincide with the finalisation of the trade pact
Three rounds of CEPA negotiations have been completed so far in 2026, covering trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and intellectual property rights
The agreement follows a period of strained diplomatic ties between the two countries that has eased since 2025, including the appointment of new envoys on both sides
Comprehensive Economic Partnership Agreement (CEPA) — Trade Agreement Typology
A CEPA is a wide-ranging bilateral trade agreement that goes beyond tariff concessions on goods to cover services, investment, intellectual property, technical barriers to trade, and regulatory cooperation — distinguishing it from a narrower Free Trade Agreement (FTA), which typically focuses on goods and tariff elimination, and from a Preferential Trade Agreement (PTA), which offers limited tariff concessions on a restricted list of items.
The CEPA under discussion is the revived and renamed version of the long-stalled India-Canada trade talks; the target of concluding negotiations before a leader-level visit is a template India has used with the UAE (CEPA signed within 88 days of launch) and Australia (ECTA).
Bilateral Trade Targets and India-Canada Economic Relations
Bilateral trade targets are commonly used as negotiating benchmarks in Indian FTA/CEPA diplomacy, signalling the scale of economic integration both sides commit to pursuing, distinct from the legal text of the agreement itself.
Key Details
- India and Canada have set a goal of more than doubling bilateral trade, targeting roughly C$70 billion (about ₹4.65 lakh crore) by 2030
- India's exports to Canada are dominated by pharmaceuticals, gems and jewellery, and textiles; Canadian exports to India include pulses, potash, and wood pulp
- Canada is home to one of the largest Indian diaspora populations outside India, a factor frequently cited in bilateral economic and people-to-people ties
- Canadian institutional investors (including pension funds) are among the largest foreign portfolio and infrastructure investors in India
The December visit and year-end CEPA deadline are being framed around this trade-doubling target, similar to how India-UAE and India-Australia deals cited specific trade multiplication goals.
Diplomatic Normalisation and High Commissioner-Level Engagement
Resumption of full diplomatic engagement — including exchange of High Commissioners — is a precondition for substantive trade negotiations between states, reflecting how political and economic tracks of bilateral relations are interlinked in India's foreign policy practice.
Key Details
- Diplomatic ties between India and Canada were strained during 2023-2024 over allegations linked to the killing of a Khalistani separatist in Canada, leading to expulsion of diplomats on both sides
- Both countries appointed new High Commissioners in 2025 as part of a normalisation process, with the Canadian High Commissioner taking charge alongside a new Indian High Commissioner to Canada
- Renewed bilateral engagement included a meeting between the two Prime Ministers in mid-2026 and reciprocal visits by trade ministers
- The CEPA relaunch in November 2025 is widely read as a marker of this broader diplomatic reset
The High Commissioner's confirmation of a year-end deal and a leader-level visit signals that the trade track has now moved ahead of the political normalisation track, a sequencing relevant to India's broader IR strategy of separating economic cooperation from security/political disputes.
- CEPA negotiations formally launched: November 2025
- Terms of Reference signed: March 2026
- Rounds of negotiation completed by mid-2026: 3 (New Delhi — May 2026; Ottawa — July 2026)
- Target for concluding negotiations: end of 2026
- Bilateral trade target: approximately C$70 billion by 2030
- Comparable prior Indian CEPAs: India-UAE CEPA (2022), India-Australia ECTA (2022)