India, Canada to Begin Fifth Round of CEPA Talks on October 5 as Both Sides Target Year-End Deal

India and Canada are set to begin the fifth round of negotiations for a proposed Comprehensive Economic Partnership Agreement (CEPA) on October 5, as both countries accelerate efforts to conclude the trade pact by the end of 2026.

The chief negotiators from the two countries are scheduled to hold the five-day discussions in Ottawa from October 5 to October 9, according to an Indian government official cited in the supplied report.

The latest round follows the conclusion of the fourth round of negotiations in New Delhi on September 18.

The renewed pace of talks comes as New Delhi and Ottawa seek to deepen their economic relationship after a period of strained bilateral ties.

India-Canada CEPA talks enter fifth round

The proposed CEPA is expected to cover a broad range of trade and investment issues.

Unlike a limited trade agreement, a comprehensive economic partnership pact generally seeks to reduce or eliminate customs duties across a substantial share of goods traded between the participating countries.

Negotiations can also cover areas such as services, investment and movement of skilled professionals.

Officials from both sides are now working towards completing negotiations by the end of the calendar year, although the final outcome will depend on the issues still under discussion.

The accelerated talks are particularly significant as Prime Minister Narendra Modi is expected to visit Canada around December, based on comments attributed to Canadian Prime Minister Mark Carney last month.

Canada’s trade minister to visit India

Canada is also planning a major business outreach programme as negotiations continue.

Canadian Trade Minister Maninder Sidhu is expected to visit New Delhi later in October with a business delegation of around 300 people, according to the supplied report.

Sidhu and India’s Commerce and Industry Minister Piyush Goyal had also met in Mumbai last month to review progress in the CEPA negotiations.

The planned business delegation could provide additional momentum to discussions by bringing companies and industry representatives into the broader economic engagement between the two countries.

India-Canada trade negotiations have a long history

The two countries first began negotiations on the proposed economic partnership agreement in 2015.

More than half a dozen rounds were held between 2015 and 2017 before the negotiations were put on hold.

Talks resumed in March 2022, when the two sides began discussions on an interim arrangement formally known as the Early Progress Trade Agreement (EPTA).

However, bilateral relations deteriorated significantly in 2023, resulting in another pause in trade negotiations.

The diplomatic dispute followed then-Canadian Prime Minister Justin Trudeau’s allegations of a potential Indian connection to the killing of Hardeep Singh Nijjar. India rejected the allegation at the time as “absurd.”

Formal negotiations for the broader trade agreement were subsequently revived in November 2025.

The renewed engagement followed high-level contacts between Modi and Canadian Prime Minister Mark Carney, including their meeting on the sidelines of the G7 summit in Kananaskis.

Bilateral goods trade declined in 2025-26

Despite the renewed push towards a trade agreement, merchandise trade between India and Canada declined during the last financial year.

According to the figures supplied, bilateral trade in goods fell 8.23% to $7.95 billion in 2025-26, compared with $8.7 billion in 2024-25.

The decline was driven primarily by lower Indian imports from Canada.

India’s exports to Canada increased 10.63% to $4.67 billion during 2025-26, while imports fell 26.14% to $3.28 billion.

The trade figures underline the potential room for growth if the two countries can reduce tariff and market-access barriers through a comprehensive agreement.

What India exports to Canada

India’s key exports to the Canadian market include a range of manufactured and industrial products.

Major export categories include:

• Pharmaceuticals
• Iron and steel
• Seafood
• Cotton garments
• Electronic goods
• Chemicals

Services are another important component of the economic relationship.

India’s services exports to Canada are led by telecommunications, computer and information services, and other business services.

What India imports from Canada

Canada supplies India with a different mix of commodities and industrial products.

Major Indian imports from Canada include pulses, pearls and semi-precious stones, coal, fertilisers, paper and crude petroleum, according to the supplied data.

An eventual CEPA could affect trade flows across these categories depending on the tariff commitments and market-access terms negotiated by the two governments.

Large Indian diaspora adds another dimension

The economic relationship is also supported by substantial people-to-people links.

Canada is home to approximately 2.9 million people of Indian origin or Indian diaspora, while more than 4.27 lakh Indian students are reported to be studying in the country.

The large student and diaspora population supports significant links in education, professional services, travel, remittances and business.

The movement of skilled professionals is also an area that can feature in comprehensive trade negotiations, making the CEPA discussions relevant beyond goods tariffs.

Canada has invested billions in India

Canada has also emerged as a source of foreign investment for India.

The figures supplied in the report show that India received approximately $4.8 billion in foreign direct investment from Canada between April 2000 and June 2026.

A deeper trade agreement could potentially support greater investment by improving market access and establishing clearer frameworks for companies operating across both markets.

Year-end target puts pressure on negotiators

The fifth round of CEPA negotiations will be important as India and Canada try to maintain the current momentum.

The two sides have resumed talks after years of pauses and diplomatic tension, while business groups are seeking greater clarity on market access and investment opportunities.

The proposed October 5–9 round in Ottawa will therefore be an important test of whether negotiators can resolve remaining differences quickly enough to meet their year-end target.

A successful agreement could expand bilateral trade, improve investment opportunities and strengthen the broader India-Canada economic relationship.

For now, however, the CEPA remains under negotiation. No final trade agreement has been concluded, and the timetable remains subject to the outcome of talks between the two countries.