India and Canada have concluded the third round of negotiations for the India-Canada Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, marking what officials described as "positive progress" across multiple negotiating tracks. The talks, held from July 6 to July 10, 2026, reaffirm both nations' shared commitment to finalize the agreement within the year.
Positive Momentum Across Multiple Tracks
According to a statement from India's Department of Commerce posted on social media platform X, the discussions witnessed positive progress, reinforcing the vision set by the leaders of both countries. The department noted that both sides are committed to concluding the negotiations in 2026, aligning with earlier political directives.
The CEPA is designed to go beyond traditional goods-focused free trade agreements, encompassing services, investment, government procurement, digital trade, and sustainable development. This comprehensive scope aims to create a modern economic framework that addresses contemporary trade dynamics.
Key Sectors and Market Access Discussions
Officials from both countries engaged in detailed discussions on market access for goods, rules of origin, trade in services, and cooperation in critical sectors. These include critical minerals, clean technology, agriculture, and pharmaceuticals. Canada is a major supplier of potash, pulses, and energy to India, while India exports pharmaceuticals, textiles, engineering goods, and IT services to Canada.
The push to conclude the CEPA in 2026 aligns with both governments' strategies to diversify trade partnerships amid ongoing global supply chain shifts. For India, a successful deal with Canada would complement recent trade agreements with the UAE, Australia, and the EFTA bloc. For Canada, India stands as its 10th largest trading partner and a key market within its Indo-Pacific strategy.
Technical Work and Future Steps
While specific details of chapters agreed upon during the third round were not disclosed, the statement indicates sustained momentum on technical work. This groundwork is expected to pave the way for ministerial-level engagement later in 2026. After the negotiations conclude, the agreement will undergo legal vetting and ratification processes before coming into force.
Bilateral goods trade between India and Canada currently stands at around CAD $10 billion annually. A concluded CEPA is expected to provide a formal framework to expand bilateral commerce and investment flows significantly. The agreement aims to reduce tariffs, streamline customs procedures, and enhance cooperation in services and investment.
Strategic Importance for Both Nations
For India, the CEPA with Canada is part of a broader strategy to secure trade agreements with major economies. The deal is seen as a way to boost exports of pharmaceuticals, textiles, and IT services, while also securing reliable supplies of potash and pulses. For Canada, the agreement offers access to India's large and growing market, supporting its Indo-Pacific economic objectives.
Both countries have expressed optimism about the negotiations, with officials indicating that the remaining issues are being addressed through constructive dialogue. The next round of talks is expected to be scheduled later this year, with the aim of reaching a final agreement by the end of 2026.
