India and Canada will begin the fifth round of negotiations for their proposed Comprehensive Economic Partnership Agreement (CEPA) in Ottawa on October 5, with both sides aiming to speed up talks and conclude the trade pact by the end of 2026.
The five-day round, led by the two countries' chief negotiators, will continue until October 9. The previous round concluded in New Delhi on September 18, with officials now pushing for faster progress towards a final agreement.
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A CEPA is a comprehensive trade agreement under which participating countries seek to significantly reduce or eliminate customs duties on a large share of goods traded between them. Such agreements can also facilitate the movement of skilled professionals, expand services trade and encourage cross-border investment.
India's major exports include pharmaceuticals, iron and steel, seafood, cotton garments, electronics and chemicals. Canada supplies India with pulses, coal, fertilisers, paper, crude petroleum, pearls and semi-precious stones.
The negotiations have gained additional momentum following an improvement in bilateral relations. Canadian Prime Minister Mark Carney has said that Prime Minister Narendra Modi is expected to visit Canada around December, while Canada's Trade Minister Maninder Sidhu is scheduled to visit New Delhi later this month with a 300-member business delegation.
India and Canada first launched negotiations for the proposed agreement in 2015, holding more than half a dozen rounds through 2017 before the process was suspended. Talks resumed in March 2022, initially focusing on an interim Early Progress Trade Agreement.
However, negotiations were paused again in 2023 after bilateral relations deteriorated following then-Canadian Prime Minister Justin Trudeau's allegation of a potential Indian link to the killing of Hardeep Singh Nijjar. India rejected the allegation as “absurd”.
The two countries agreed to resume formal negotiations for the broader trade agreement in November 2025. The renewed momentum followed a meeting between Modi and Carney on the sidelines of the G7 summit in Kananaskis, Canada, in June 2025.
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Despite the diplomatic tensions, economic ties remain significant. Bilateral goods trade fell 8.23% to $7.95 billion in 2025-26, from $8.7 billion the previous year. India's exports to Canada increased 10.63% to $4.67 billion, while imports fell 26.14% to $3.28 billion.
(With the PTI inputs)
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