With an aim to fast-track free trade agreement (FTA), India and Canada have launched formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The Terms of Reference (ToR) for the agreement was signed by Commerce and Industry Minister Piyush Goyal and his Canadian counterpart Maninder Sidhu in the presence of Prime Minister Narendra Modi and Prime Minister Mark Carney of Canada at Hyderabad House. 

The ToR of negotiations will provide format, frequency, and approach to the CEPA negotiations. It will serve as a guide to facilitate negotiations in order to conclude an ambitious, balanced and mutually beneficial pact. Both the sides are looking to finalise the pact soon. Prime Minister Narendra Modi said the two countries have set a target of achieving $50 billion in bilateral trade by 2030 and underlined the need to unlock the full potential of economic cooperation through an early conclusion of the CEPA. Carney described the move as an expansion of a valued partnership with ‘new ambition, focus and foresight’.

The proposed agreement will cover trade in goods and services, along with other mutually agreed policy areas. Bilateral trade between India and Canada stood at $8.66 billion in FY 2024-25, with India exporting goods worth $4.22 billion and importing $4.44 billion. India’s key exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals. Major imports from Canada include pulses, pearls and semi-precious stones, coal, fertilisers, paper and crude petroleum.