Canada and India Fast-Track Trade Deal for December Finalization

The Government of Canada and the Government of India have agreed to fast-track negotiations for a Comprehensive Economic Partnership Agreement (CEPA), aiming to conclude the deal by the end of 2026. Prime Minister of Canada announced during the United Nations General Assembly that Indian Prime Minister Narendra Modi is expected to visit Canada in December to potentially finalize the pact. This diplomatic thaw follows a severe rupture under former Prime Minister Justin Trudeau regarding the 2023 killing of Hardeep Singh Nijjar.

Negotiations formally launched in March 2026 and have progressed through four rounds of talks, the most recent of which concluded in Mumbai and New Delhi in September. Indian Commerce and Industry Minister Piyush Goyal and Canadian International Trade Minister Maninder Sidhu have scheduled a fifth round of talks for October 5 in Canada. The discussions focus on energy, critical minerals, and agriculture, with Canada seeking farm product market access and India requesting more professional visas.

This economic rapprochement is part of a broader Canadian strategy to double non-U.S. trade and reduce dependence on the United States amid the tariff regimes of President Donald Trump. Canada aims to increase bilateral trade with India to approximately C$70 billion annually by 2030. Simultaneously, Canada is diversifying other ties, with trade deals with the Philippines and ASEAN reported as over 90% complete.