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India, Canada Resume Trade Talks for CEPA
4 May
Summary
- India and Canada have restarted negotiations for a free trade agreement.
- The agreement aims to increase bilateral trade to $50 billion by 2030.
- The five-day talks started on May 4 and mark a resumption of previous discussions.
India and Canada commenced their second round of Comprehensive Economic Partnership Agreement (CEPA) negotiations on May 4, 2026. These pivotal discussions, spanning five days, are designed to enhance bilateral trade and investment flows between the two nations. The agreement's scope encompasses trade in goods and services, alongside other mutually beneficial policy domains.
This round is particularly significant as India's Commerce and Industry Minister is slated to visit Canada by the end of May to accelerate the process. The current negotiations represent a resumption of talks, which were previously paused by Canada in 2023. Both countries have agreed to restart from the beginning, acknowledging the dynamic global trade landscape that has evolved over the past two years.
The overarching goal of these negotiations is to achieve a bilateral trade target of $50 billion by 2030. In 2024-25, the trade stood at $8.66 billion. Canada, with a substantial market of over 41 million people and a GDP of $2.34 trillion at PPP, offers significant opportunities. India's key exports include pharmaceuticals and steel, while imports focus on pulses and petroleum crude. The services sector also plays a crucial role, with significant exports in computer and information services.
