India and Canada have completed their third round of negotiations for a trade agreement, aiming to finalize the deal within 2026. The talks come as bilateral trade declined to $7.95 billion in 2025-26, highlighting a push to recover momentum in economic cooperation and market access.
India and Canada concluded a five-day series of negotiations in Ottawa on July 10, 2026, marking the third round of talks for a Comprehensive Economic Partnership Agreement (CEPA). The discussions focused on creating a framework to ease trade in goods and services, while also addressing intellectual property rights, rules of origin, and standards for food and agricultural products.
Targeting Long-Term Trade Goals
Both nations are working toward an ambitious goal of reaching $50 billion in bilateral trade by 2030. The current negotiation timeline aims to conclude the agreement before the end of the year. For Indian businesses, this pact could potentially reduce barriers for key export sectors such as pharmaceuticals, iron and steel, and seafood. For Canada, the deal is seen as a way to formalize trade relations and improve access to India's growing market for agricultural commodities like pulses and minerals like coal.
Economic Context and Trade Performance
These negotiations arrive at a time when the economic connection between the two nations has faced pressure. Official data for the 2025-26 fiscal year shows that bilateral trade fell by 8.22% to $7.95 billion, down from $8.66 billion in the previous year. Indian exports reached $4.67 billion, while imports from Canada were recorded at $3.28 billion. The decline reflects shifting global trade conditions that both governments are now seeking to mitigate through a formal policy framework.
Strategic Importance for Services
Beyond the physical movement of goods, the agreement aims to lower hurdles for the services sector. India’s competitive advantage in telecommunications, computer programming, and other business services is a core part of the discussion. With Canada hosting a large Indian diaspora and over 425,000 Indian students, there is significant interest in harmonizing regulatory environments to support professional mobility and business collaboration.
Investors and businesses should monitor the progress of future negotiating rounds, specifically regarding the final agreement on service-sector access and the timeline for implementation. The primary indicator of success will be whether the final agreement can reverse the recent contraction in trade volumes and provide a stable policy environment for long-term investment.