India-Canada CEPA: Second round of FTA talks concludes in New Delhi
Synopsis
India and Canada are racing toward a year-end CEPA deal, completing their second round of FTA talks in just two months. With bilateral goods trade at a modest $8.66 billion in 2024-25 and a $50 billion target by 2030, the diplomatic reset under PM Carney — after the deep freeze of the Trudeau era — is translating into unusually swift negotiating momentum.
Key Takeaways
The second round of India-Canada CEPA negotiations concluded at Vanijya Bhawan, New Delhi on 8 May 2025 .
Chapters covered include trade in goods, services, intellectual property, rules of origin, and technical barriers to trade.
The next round is scheduled for July 2025 in Ottawa ; both governments are targeting a year-end deal .
Minister Piyush Goyal is set to visit Canada later this month to accelerate talks.
India-Canada bilateral goods trade stood at $8.66 billion in 2024-25, with a joint target of CAD 70 billion / ₹4.65 lakh crore by 2030.
India and Canada concluded the second round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) in New Delhi on 8 May 2025, covering a broad range of chapters including trade in goods, trade in services, intellectual property, rules of origin, sanitary and phytosanitary measures, and technical barriers to trade, according to a joint statement issued by both countries.
What the Second Round Covered
The five-day talks, hosted by India's Commerce Ministry at Vanijya Bhawan from 4–8 May, concluded with both sides reaffirming their shared commitment to advancing a balanced, ambitious, and mutually beneficial agreement. The discussions were held in accordance with the Terms of Reference signed by the Trade Ministers of both countries on 2 March. The joint statement described the engagement as constructive and productive.
What Comes Next
Both sides agreed to continue negotiations in a constructive and cooperative spirit. The next round of discussions is scheduled to be held in July in Ottawa, with intersessional engagements to continue in the interim. Commerce and Industry Minister Piyush Goyal is also scheduled to visit Canada at the end of this month to accelerate economic engagement momentum.
According to a senior official, the intent is to fast-track talks so that the agreement can be concluded by year-end, as decided by the Prime Ministers of both countries earlier this year.
Diplomatic Reset Behind the Push
The first round of CEPA negotiations took place in March 2025, following Canadian Prime Minister Mark Carney's visit to New Delhi for a summit with Prime Minister Narendra Modi. That meeting set the tone for a marked improvement in bilateral ties, which had hit a low point during former Prime Minister Justin Trudeau's tenure — a period marked by diplomatic friction over allegations that the Trudeau government was seen to be encouraging Sikh extremist activity targeting India.
At the March summit, PMs Modi and Carney set a year-end target for completing CEPA negotiations and agreed to deepen collaboration in the energy and critical minerals sectors. The leaders expressed confidence that a comprehensive trade framework would serve as a
Point of View
And Carney's reset, while welcome, still has to deliver a text that satisfies India's sensitive sectors — agriculture, dairy, and digital — alongside Canada's own political constraints on pulses and critical minerals access.
NationPress
12 May 2026
Frequently Asked Questions
What is the India-Canada CEPA?
The India-Canada Comprehensive Economic Partnership Agreement (CEPA) is a proposed free trade agreement aimed at strengthening bilateral trade and economic ties. The two countries are targeting bilateral trade of CAD 70 billion, or approximately ₹4.65 lakh crore, by 2030.
What was covered in the second round of India-Canada CEPA talks?
The second round, held in New Delhi from 4–8 May 2025, covered trade in goods, trade in services, intellectual property, rules of origin, sanitary and phytosanitary measures, and technical barriers to trade. Both sides described the engagement as constructive and productive.
When is the next round of India-Canada FTA negotiations?
The next round is scheduled for July 2025 in Ottawa, Canada, with intersessional engagements planned in the interim period.
What is the current state of India-Canada bilateral trade?
India-Canada bilateral trade in goods stood at $8.66 billion in 2024-25, with India's exports to Canada at $4.22 billion. Key Indian exports include pharmaceuticals, machinery, electronic goods, and textiles; key imports from Canada include pulses, fertilisers, and mineral fuels.
How did India-Canada diplomatic ties improve ahead of these talks?
Ties improved significantly after Canadian Prime Minister Mark Carney visited New Delhi in March 2025 and met Prime Minister Narendra Modi. The two leaders set a year-end target for completing CEPA negotiations, marking a sharp diplomatic reset from the tensions of the Trudeau era.
