India, Canada Launch CEPA Talks To Deepen Trade Ties, Sign ToR

New Delhi, Mar 3 (KNN) India and Canada have formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), signalling a renewed push to deepen bilateral economic ties.

The officials from two sides who met in New Delhi this week expect to finalise the agreement soon. 

The Terms of Reference (ToR) for the CEPA were signed by Piyush Goyal, Minister of Commerce & Industry, and Maninder Sidhu, Canada’s Minister of International Trade. The documents were exchanged in the presence of Prime Minister Narendra Modi and Prime Minister Mark Carney at Hyderabad House.

Target: USD 50 Billion Bilateral Trade by 2030

Prime Minister Modi highlighted an ambitious target of achieving USD 50 billion in bilateral trade by 2030, stressing the importance of unlocking the full potential of economic cooperation through an early conclusion of CEPA.

Prime Minister Carney described the initiative as an expansion of a valued partnership with ‘new ambition, focus, and foresight,’ underscoring a shared commitment to shaping future-oriented economic cooperation.

Framework for Negotiations

The ToR establishes the format, frequency and approach for negotiations, serving as a roadmap to conclude an ambitious, balanced and mutually beneficial agreement. 

The decision follows the leaders’ discussions during their bilateral meeting on the margins of the G7 Summit in Kananaskis, Canada, in October 2025. Negotiations will cover trade in goods and services, along with other mutually agreed policy areas.

Trade and Economic Context

Canada, with a population of approximately 41.65 million in 2025 and a GDP (PPP) of USD 2.34 trillion, represents a significant market opportunity for India. Bilateral trade stood at USD 8.66 billion in FY 2024–25, comprising exports from India, USD 4.22 billion and imports from Canada, USD 4.44 billion.

Key Indian exports to Canada include drugs and pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals. Key Indian imports from Canada include pulses, pearls and semi-precious stones, coal, fertilisers, paper and petroleum crude.

In services, India’s key export sectors to Canada include telecommunications, computer and information services, and other business services, areas expected to witness further expansion upon the CEPA’s conclusion.

Strong People-to-People Ties

Canada is home to over 425,000 Indian students and a large Indian diaspora community. These strong and enduring people-to-people connections, often described as ‘One Family’, are expected to be further strengthened through the successful conclusion of the India–Canada CEPA.

The launch of negotiations marks a significant milestone in revitalising bilateral economic engagement and enhancing long-term trade and investment cooperation between the two countries.

(KNN Bureau)