India and Canada are working towards finalising a Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, as both countries seek to turn improving diplomatic relations into stronger trade and investment ties. The proposed agreement is being pursued ahead of Prime Minister Narendra Modi’s planned visit to Canada in December.
 

The proposed trade pact was discussed during a meeting between External Affairs Minister S Jaishankar and Canadian Foreign Minister Anita Anand on October 30 on the sidelines of the G20 Foreign Ministers’ meeting in Atlanta.
 

Anand welcomed the progress made in the negotiations. Both ministers discussed advancing their priorities under a shared roadmap, with the proposed agreement aimed at expanding trade and investment between the two countries.
 

Canada has set a target of doubling bilateral trade to $70 billion by 2030. According to Canadian government figures, merchandise trade between India and Canada stood at $13.6 billion in 2025, while total trade in goods and services amounted to $30.4 billion.
 

The negotiations have had a long and uneven history. India and Canada first began discussions on a Comprehensive Economic Partnership Agreement in 2015 and held several rounds of talks before the process slowed down.
 

Negotiations were revived in March 2022 but were suspended in September 2023 following a major deterioration in diplomatic relations after the killing of Khalistani separatist Hardeep Singh Nijjar in Canada.
 

The two countries agreed to formally restart negotiations for a new CEPA in November 2025 during a meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Summit in Johannesburg.
 

The latest round of negotiations, which was the fifth, took place in Ottawa from October 5 to 9.
 

The proposed agreement covers a wide range of areas, including trade in goods and services, rules of origin, intellectual property, sanitary and phytosanitary measures, and technical barriers to trade.
 

The two foreign ministers also welcomed the momentum in the renewed India-Canada strategic partnership. Recent high-level engagements include Anand’s visit to India on October 13 and 14, along with other contacts between senior officials over the past year.
 

Both ministers agreed that Modi’s planned visit to Canada in December would mark another important milestone in the expanding bilateral relationship. They also decided to remain in regular contact ahead of the visit.
 

The trade negotiations are among the key economic priorities in the broader efforts by New Delhi and Ottawa to rebuild relations following the diplomatic tensions of 2023.