Canada and India are advancing negotiations toward a Comprehensive Economic Partnership Agreement (CEPA), with both countries aiming to conclude the proposed trade pact by December 2026, ahead of Indian Prime Minister Narendra Modi’s anticipated visit to Canada. The sixth round of negotiations is currently underway in India as Ottawa and New Delhi seek to strengthen economic cooperation and expand bilateral trade.
Canadian Minister of International Trade Maninder Sidhu confirmed the progress during the Confederation of Indian Industry (CII) Partnership Summit in Visakhapatnam, stating that chief negotiators from both countries were engaged in discussions to finalize the agreement. The proposed timeline reflects renewed efforts to deepen commercial ties following improvements in diplomatic relations under Canadian Prime Minister Mark Carney and Modi.
The two countries are working toward increasing bilateral trade to approximately C$70 billion by 2030, with negotiations covering several strategically important industries. Energy cooperation remains a major priority, including potential agreements involving liquefied natural gas and uranium supplies. Discussions also include critical minerals, electric vehicle batteries, agricultural products such as potash, and investments in technology and artificial intelligence.
The proposed agreement is expected to improve market access, reduce trade barriers and create new opportunities for businesses and investors in both countries. Canada is seeking to strengthen its position as a supplier of energy, agricultural commodities and critical minerals, while India is looking to expand its commercial partnerships and secure resources needed to support its growing economy and manufacturing industries.
The renewed negotiations follow a diplomatic reset between Ottawa and New Delhi after several years of strained relations. In March 2026, the two governments signed terms of reference establishing a framework for advancing trade discussions. Since then, both sides have increased diplomatic engagement and identified economic cooperation as a priority in rebuilding their bilateral relationship.
Modi’s anticipated visit to Canada in December is expected to provide an opportunity for both governments to announce progress or potentially conclude the agreement. Although negotiators are targeting a December deadline, the final outcome will depend on resolving outstanding issues and securing approval from both governments.
The trade initiative forms part of Canada’s broader strategy to diversify its international partnerships and reduce dependence on the United States. A successful agreement could strengthen Canada’s economic presence in South Asia while providing India with greater access to Canadian resources, investment and advanced technologies.
