Canada steps up India trade talks, fourth CEPA round underway
Canada and India Advance Fourth Round of CEPA Negotiations
Theindiapostdaily.com – Canada is intensifying its effort to reach a wide-ranging trade agreement with India before the end of the year, with the fourth negotiating round of the proposed Comprehensive Economic Partnership Agreement now in progress. International Trade Minister Maninder Sidhu is travelling to Mumbai to meet commerce minister Piyush Goyal and senior business representatives as both governments seek to build momentum behind the talks.
The proposed agreement, commonly known as CEPA, is intended to strengthen commercial links between the two countries and support a target of doubling bilateral trade to C$70 billion by 2030. Discussions are focused on areas expected to play a larger role in future trade, including clean energy, critical minerals and digital services.
A broad agenda for trade and investment
The negotiations extend well beyond tariffs on physical goods. The framework being discussed includes goods and services trade, investment, agriculture and agri-food, digital commerce, temporary business travel, sustainable development and regulatory cooperation. Advanced manufacturing and skills development have also been identified as potential areas for closer economic collaboration.
For Canadian businesses, a central objective is improved access to India’s large and growing market. Ottawa wants reduced tariff and non-tariff obstacles, clearer conditions for investment and more predictable rules for companies operating across borders. Easier temporary movement for business professionals is also part of the agenda, reflecting the importance of direct commercial relationships in sectors such as technology, services and manufacturing.
The talks additionally cover government procurement, intellectual property, competition policy, state-owned enterprises and regulatory issues. Addressing these topics can be as important as lowering duties, since companies often face practical barriers involving approvals, standards, compliance requirements and market-entry procedures.
Protected sectors remain a challenge
Despite the renewed negotiating drive, significant limits remain. Canada has said its domestic dairy, poultry and egg sectors will not be opened to Indian access. Those industries operate under Canada’s supply-management system and have traditionally been treated as politically sensitive in trade negotiations.
This illustrates the complexity of the process. A CEPA can create opportunities across many sectors while still leaving selected products subject to restrictions. Progress will therefore depend on whether both sides can reach workable compromises in less sensitive areas while respecting domestic priorities.
India and Canada resumed serious engagement after a period of higher-level diplomatic contact. Formal negotiations began in November 2025. The terms of reference for the agreement were signed when Canadian Prime Minister Mark Carney visited India in March, setting the scope for the current work.
Trade relationship has room to grow
The commercial relationship already spans a diverse mix of goods and services. Global Affairs Canada places two-way trade in goods and services between the countries at C$30.4 billion in 2025, including C$13.6 billion in merchandise trade.
Indian government figures for 2025-26 show merchandise trade of $7.95 billion. India exported goods valued at $4.67 billion to Canada and imported $3.28 billion. Differences in the reported totals reflect the use of different currencies, reporting periods and trade measurement methods.
India’s exports to Canada include pharmaceuticals, iron and steel products, seafood, clothing, electronics and chemicals. Canada supplies India with products such as pulses, coal, fertilizers, paper and crude petroleum. A future trade pact could influence the conditions under which these established product categories are traded while opening space for additional investment and service-sector activity.
Clean energy and critical minerals are particularly notable areas of interest because both countries see them as strategically important to industrial development and supply chains. Digital trade is also likely to require detailed rules on how businesses deliver services, move data and operate in cross-border markets. The final scope of any commitments will depend on the negotiations.
Business engagement accompanies official talks
Government-led negotiations have been paired with efforts to bring companies from both countries into closer contact. In May, Goyal led a delegation of more than 120 Indian companies to Canada. The Canadian government described it as the largest Indian trade delegation sent overseas.
India and Canada also created a Trade and Investment Forum designed to encourage corporate partnerships and investment. Such forums can help businesses identify commercial opportunities while negotiators work through the legal and policy provisions of a formal agreement.
Sidhu’s Mumbai meetings are part of a wider Canadian trade programme in the region. Following his India visit, he is scheduled to travel to Manila on September 21 and 22 for the ASEAN Economic Ministers-Canada Consultation. Canada is also pursuing progress in its trade discussions with ASEAN and the Philippines.
The fourth CEPA round will be closely watched because it may determine whether the year-end objective remains realistic. A successful agreement would provide a more structured basis for trade and investment between Canada and India, though the pace will ultimately depend on resolving market-access questions and other issues still under negotiation.
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