India and Canada concluded the third round of negotiations for the India-Canada Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, with "positive progress". The negotiations were held from July 6-10.
"India and Canada concluded the third Round of negotiations for the India-Canada Comprehensive Economic Partnership Agreement (CEPA) in Ottawa from 6-10 July 2026. The discussions witnessed positive progress across multiple negotiating tracks, reaffirming the shared commitment of both countries to conclude the negotiations in 2026, in line with the vision of the leaders," the Department of Commerce said in a post on X.
Both countries have committed to concluding the talks this year. The push to conclude CEPA in 2026 aligns with both governments' focus on diversifying trade partnerships amid global supply chain shifts.
A CEPA is expected to go beyond the traditional goods-focused FTA to cover services, investment, government procurement, digital trade, and sustainable development. Officials from both sides discussed market access for goods, rules of origin, trade in services, and cooperation in key sectors including critical minerals, clean technology, agriculture, and pharmaceuticals.
Canada is a major source of potash, pulses, and energy for India, while India exports pharmaceuticals, textiles, engineering goods, and IT services to Canada. For India, a deal with Canada would add to its recent trade agreements with the UAE, Australia and the EFTA bloc. For Canada, India is its 10th-largest trading partner and a key market in the Indo-Pacific strategy.
While details of specific chapters agreed in the third round were not disclosed, the statement indicates momentum on technical work ahead of ministerial-level engagement later this year. Both countries have said they aim to conclude the negotiations in 2026, after which legal vetting and ratification processes will follow before the agreement comes into force.
With two-way goods trade at around CAD $10 billion in recent years, a concluded CEPA is expected to provide a formal framework to expand bilateral commerce and investment flows.
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