NEWS. CONTEXTS. PERSPECTIVE
ElevenAM Business Desk
19 Sept 2026
The two sides have completed another round of CEPA negotiations as they work toward a broader trade agreement covering goods, services and investment.
ElevenAM Business Desk | Itanagar | 19 September 2026 | 3:11 PM IST
India and Canada have concluded the fourth round of negotiations for a Comprehensive Economic Partnership Agreement in New Delhi, as the two countries try to rebuild economic momentum after a period in which political tensions slowed bilateral engagement. The latest round was held from September 14 to 19 and covered trade in goods, services and investment.
Commerce and Industry Minister Piyush Goyal and Canadian International Trade Minister Maninder Sidhu have both signalled that they want the negotiations accelerated. The objective is to move toward a wider agreement that lowers barriers, improves market access and creates clearer rules for businesses operating between the two economies.
Two chapters of the proposed agreement have already been completed, with both sides working toward a broader conclusion by the end of 2026.
The negotiations are commercially significant because the relationship has room to expand well beyond its current level. Bilateral merchandise trade has remained modest relative to the size of the two economies, while investment, education, energy and services have created a wider economic relationship.
India’s exports to Canada were about $3.28 billion in 2025-26, while imports were around $4.44 billion, according to figures cited during the current trade discussions.
Canada is looking for greater access to one of the world’s fastest-growing large markets, while India is seeking opportunities for its goods, services and skilled sectors. Areas under discussion include aerospace, artificial intelligence and critical minerals, alongside more conventional trade in manufactured goods, agricultural products and services.
The final balance will depend on how both sides handle sensitive sectors where domestic producers may resist deeper market opening.
Energy has become an important part of the broader economic reset. During Canadian Prime Minister Mark Carney’s visit to India earlier this year, the two countries announced a Strategic Energy Partnership covering areas such as liquefied natural gas, liquefied petroleum gas, uranium, solar power and hydrogen.
A major uranium supply agreement involving Canadian producer Cameco has reinforced the strategic dimension of the relationship.
For Canada, the trade talks also fit into a wider effort to diversify economic relationships beyond the United States. Ottawa has set an ambitious goal of increasing bilateral trade with India substantially by 2030.
India, meanwhile, has been pursuing multiple trade agreements as part of a broader strategy to expand exports, attract investment and secure supply chains in areas ranging from energy to technology and critical minerals.
The current CEPA process is not the first attempt to conclude a comprehensive India-Canada trade agreement. Negotiations have been explored in different forms since 2010 but repeatedly lost momentum. The present effort therefore carries an additional test: whether improved political engagement can be translated into a durable commercial framework rather than another incomplete negotiation cycle.
Important issues remain unresolved. Trade agreements of this scale typically require difficult compromises over tariffs, services access, investment protections, standards, professional mobility and politically sensitive agricultural products. Progress in the next rounds will depend on whether negotiators can narrow those differences while keeping the wider diplomatic relationship stable.
The conclusion of the fourth round does not mean a deal is finished, but it does mark sustained movement in a relationship that only recently was dominated by political friction. If the two governments can maintain the pace of talks, the CEPA could become one of the most concrete economic outcomes of the recent India-Canada reset.