1.
ToR Signed to Launch CEPA Talks:
India and Canada formally launched negotiations for a
Comprehensive Economic Partnership Agreement (CEPA) on 2 March 2026 in New
Delhi.
The Terms of Reference (ToR) were signed by Piyush Goyal and Maninder Sidhu, in the presence of Narendra Modi and Mark Carney.
2.
Ambitious
Trade Target Set:
PM Modi stated the goal of raising bilateral trade to US$50 billion by 2030, emphasizing early finalisation of CEPA
to unlock full economic potential.
3.
Framework
for Negotiations:
The ToR will define the format, frequency, and
approach of negotiations, guiding efforts toward an ambitious, balanced, and
mutually beneficial agreement.
4.
Background
& Political Momentum:
The move follows leaders’ discussions on the sidelines of the G7 Summit in Kananaskis 2025, where both sides agreed to accelerate
CEPA talks.
5.
Scope
of the Agreement:
Negotiations will cover:
o Trade in goods
o Trade in services
o Other mutually agreed policy areas
6.
Current
Trade Snapshot (FY 2024–25):
o Total bilateral trade: US$8.66 billion
§ India’s exports: US$4.22 billion
§ Imports from Canada: US$4.44 billion
7.
Key
Trade Composition:
o India’s exports: Pharmaceuticals, iron & steel,
seafood, cotton garments, electronics, chemicals
o India’s imports: Pulses, pearls & semi-precious
stones, coal, fertilizers, crude petroleum
8.
Services
& Education Linkages:
Strong growth potential in telecom, IT and business services exports.
Canada hosts over 425,000
Indian students,
strengthening people-to-people and economic ties.
The signing of the ToR marks a formal restart and acceleration of India–Canada
trade negotiations. If concluded swiftly, CEPA could significantly deepen goods
and services trade, diversify supply chains, and strengthen strategic economic
engagement between the two G20 economies.
India
and Canada launched negotiations for the Comprehensive Economic Partnership Agreement
(CEPA) on 2 March, 2026 in New Delhi and decided to finalise it soon. The Terms
of Reference (ToR) for the India-Canada Comprehensive
Economic Partnership Agreement (CEPA) were signed by Piyush Goyal, Minister of Commerce
& Industry and Mr. Maninder Sidhu, Minister of International Trade of Canada
on 2nd March 2026 and were exchanged in the presence of Prime Minister Narendra
Modi & Prime Minister Mr. Mark Carney of Canada at Hyderabad House, New Delhi.
During
the ceremony, Prime Minister Modi highlighted that the goal for bilateral trade
is to reach US$50 billion by 2030. The priority is to unlock the full potential
of economic cooperation for which India and Canada has decided to finalize the Comprehensive
Economic Partnership Agreement (CEPA) soon. Prime Minister Carney said that it is
the expansion of a valued partnership with new ambition, focus, and foresight—a
partnership between two confident countries charting own course for the future.
The
ToR of negotiations will provide format, frequency, and
approach to India-Canada CEPA negotiations. It will serve as a guide to facilitate
negotiations in order to conclude an ambitious, balanced and mutually beneficial
Comprehensive Economic and Partnership Agreement (CEPA).
As
follow up to the leader’s statement during their bilateral meeting on the margins
of the G7 meeting in Kananaskis, Canada in October 2025, both sides started working
towards finalising the ToR for the negotiations of India-Canada
CEPA.
The
negotiations would cover trade in goods, services and other mutually agreed policy
areas.
Canada
represents a market of 41.65 million people (2025) and US$ 2.34 trillion in terms
of GDP at PPP. The India–Canada CEPA holds significant potential to unlock and expand
bilateral trade which stood at USD 8.66 billion) in FY 2024-25 (Exports: USD 4.22
billion; Imports: USD 4.44 billion. (Source: DGCI&S)
Key
exports from India to Canada include drugs & pharmaceuticals, iron & steel,
seafood, cotton garments, electronic goods and chemicals among others. Key imports
of India from Canada include pulses, pearls & semiprecious stones, coal, fertilizer,
paper and petroleum crude.
Key
sectors of India’s services exports to Canada include telecommunications, computer
and information services, and other business services. These sectors hold significant
future growth potential and are expected to expand further following the conclusion
of the CEPA.
Canada
is also home to over 425,000 Indian students and a strong Indian community. These
strong and enduring people-to-people ties which constitute “One Family” would be
further reinforced by the conclusion of India- Canada CEPA.