India and Canada wrapped up the third round of negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in Ottawa from 6 to 10 July 2025, the Department of Commerce confirmed on Saturday. Both sides reported positive progress across multiple negotiating tracks and reaffirmed their shared commitment to conclude the agreement by 2026, in line with the vision of their respective leaders.

Leaders Signal Urgency on FTA

The renewed momentum follows a high-profile bilateral meeting on the sidelines of the G7 Summit in Evian, France, last month, where Prime Minister Narendra Modi indicated he may visit Canada before the end of this year — and set a clear expectation that the long-pending free trade deal be signed before that visit.

'You're right that we're very excited about the Free Trade Agreement. And, as you've invited me to come to Canada, I'm also trying to come this year. And, before I come, let's complete this agreement. We want to make a lot of progress in technology. In energy security, Canada can be a very big partner. So these are all the areas that will be discussed a lot today. And I'm very grateful to you that I'm getting a chance to meet all of you,' Modi said during his meeting with Canadian Prime Minister Mark Carney.

Carney Calls the FTA a 'Game Changer'

Canadian Prime Minister Mark Carney has been equally emphatic about the significance of the deal. After meeting Commerce and Industry Minister Piyush Goyal in Ottawa, Carney wrote on social media: 'We're negotiating a free trade deal with India. This will be a game changer for Canadian workers and businesses — unlocking a massive new market.'

Carney also noted that both countries continue to make 'very good progress' toward finalising the agreement, signalling that the political will on both sides is stronger than it has been in years.

Context: A Reset in Bilateral Ties

The pace of these negotiations marks a notable shift from the diplomatic turbulence that strained India-Canada relations in 2023. The two countries have since signalled a rapid bilateral reset, with trade emerging as the primary vehicle for rebuilding the relationship. CEPA, if concluded, would give Indian exporters preferential access to the Canadian market while opening Canada's energy and technology sectors to deeper Indian engagement — two areas both leaders explicitly flagged as priorities.

Notably, this is the third formal negotiating round in relatively quick succession, suggesting a deliberate effort to compress the timeline. The 2026 target, endorsed at the leadership level, now has a credible negotiating track record behind it.

What Comes Next

With three rounds complete and a leadership-level deadline of 2026 in place, the focus will shift to resolving outstanding differences on market access, rules of origin, and services — areas that have historically slowed India's FTA negotiations with other partners. A potential visit by PM Modi to Canada later this year could serve as the political catalyst for a final push.