CEPA negotiations launched as India and Canada aim to scale bilateral trade from $8.66 bn to $50 bn by 2030.
India and Canada on Monday formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in New Delhi, setting a target to raise bilateral trade to USD 50 billion by 2030 from current levels.
According to the Ministry of Commerce & Industry, the Terms of Reference (ToR) for the India–Canada CEPA were signed on March 2, 2026, by Union Commerce and Industry Minister Piyush Goyal and Canada’s minister of International Trade Maninder Sidhu. The ToR were exchanged in the presence of Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney at Hyderabad House.
Prime Minister Modi said the USD 50 billion trade goal by 2030 underscores the need to unlock the full potential of economic cooperation through the early conclusion of the CEPA. Prime Minister Carney described the agreement as an expansion of a valued bilateral partnership, marked by “new ambition, focus and foresight.”
The ToR lays down the format, frequency and approach for negotiations and will act as a guiding framework to conclude an ambitious, balanced and mutually beneficial agreement. The move follows discussions between the two leaders on the margins of the G7 meeting in Kananaskis, Canada, in October 2025, where both sides agreed to advance CEPA negotiations.
The proposed CEPA will cover trade in goods and services, along with other mutually agreed policy areas. Bilateral trade between India and Canada stood at USD 8.66 billion in FY 2024–25, with India exporting goods worth USD 4.22 billion and importing USD 4.44 billion, according to data from the Directorate General of Commercial Intelligence and Statistics (DGCI&S).
Key Indian exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronics and chemicals, while major imports from Canada comprise pulses, coal, fertilisers and crude petroleum. The government also noted that Canada hosts over 4.25 lakh Indian students and a vibrant Indian diaspora, with the CEPA expected to further strengthen people-to-people ties alongside deeper trade and economic engagement.
Source: ANI
