India and Canada are set to begin the fifth round of negotiations for their proposed Comprehensive Economic Partnership Agreement (CEPA) in Ottawa on Monday, as both countries push to conclude the trade pact before the end of 2026.
The five-day round, led by the chief negotiators of both countries, will run through October 9. Officials say they are aiming for faster progress towards a final agreement after the previous round concluded in New Delhi on September 18.
December summit sets the deadline
The talks have gained fresh momentum ahead of an expected visit to Canada by Indian Prime Minister Narendra Modi in December, when both sides hope to finalise the deal. Canada’s Trade Minister Maninder Sidhu is also scheduled to visit New Delhi later this month with a 300-member business delegation.
Modi and Canadian Prime Minister Mark Carney had set a year-end target to complete the CEPA negotiations during their summit in New Delhi in March, agreeing also to deepen collaboration in energy and critical minerals. The two leaders said a comprehensive framework would anchor the partnership and support the shared goal of expanding bilateral trade to CAD 70 billion by 2030.
A diplomatic thaw after rocky years
Two-way trade in goods stood at $8.66 billion in 2024-25, with India’s exports touching $4.22 billion. India’s main exports to Canada include pharmaceutical products, machinery parts, iron and steel articles, electronic goods, textiles, jewellery and engineering goods, while its major imports from Canada are pulses, fertilisers, mineral fuels, wood pulp and aircraft parts. India’s IT sector is the main contributor to services exports to Canada.
The push for a deal reflects a marked improvement in diplomatic ties after they hit rock bottom during Carney’s predecessor Justin Trudeau’s tenure. With supply chains being redrawn and trade tensions rising across the globe, both governments are keen to lock in a framework that could nearly multiply bilateral trade several times over by the end of the decade.
Source: The Hawk (IANS)