India and Canada have successfully concluded the third round of negotiations for the Comprehensive Economic Partnership Agreement in Ottawa, held between 6 and 10 July 2026.

The Department of Commerce confirmed that the discussions registered positive progress across multiple negotiating tracks, with both sides reaffirming their shared commitment to finalise the agreement within 2026.

The latest round of talks marks a significant step forward in bilateral trade engagement. A CEPA is designed to go beyond the traditional goods-focused free trade agreement, incorporating services, investment, government procurement, digital trade and sustainable development.

This broader framework reflects the evolving priorities of both nations in the context of global supply chain realignments.

Officials engaged in detailed discussions on market access for goods, rules of origin, trade in services and cooperation in critical sectors. These included critical minerals, clean technology, agriculture and pharmaceuticals.

Canada remains a major supplier of potash, pulses and energy to India, while India exports pharmaceuticals, textiles, engineering goods and IT services to Canada, underscoring the complementary nature of their economies.

The push to conclude CEPA by 2026 aligns with India’s wider trade diversification strategy, following recent agreements with the UAE, Australia and the EFTA bloc.

For Canada, India is its tenth largest trading partner and a vital market within its Indo-Pacific strategy, making the agreement strategically important for Ottawa’s global economic positioning.

Although the details of specific chapters agreed during the third round were not disclosed, the statement from the Department of Commerce indicates momentum on technical work. This progress is expected to pave the way for ministerial-level engagement later in the year, which will be crucial in resolving outstanding issues and accelerating the path towards conclusion.

Both governments have emphasised that once negotiations are concluded in 2026, the agreement will undergo legal vetting and ratification before coming into force. This process will ensure that the CEPA provides a robust and enforceable framework for expanding bilateral commerce and investment flows.

Currently, two-way goods trade between India and Canada stands at around CAD $10 billion annually. A concluded CEPA is expected to significantly enhance this figure by providing a formal structure for trade and investment, unlocking new opportunities in diverse sectors and strengthening the economic partnership between the two nations.

The negotiations also reflect the broader geopolitical context, where both countries are seeking to reduce dependence on traditional markets and build resilient supply chains.

For India, Canada’s resources and technology complement its domestic priorities in clean energy, food security and advanced manufacturing. For Canada, India’s growing economic stature offers access to a dynamic market and a strategic partner in Asia.

ANI