In a significant diplomatic and economic breakthrough, India and Canada are scheduled to resume formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA) beginning next week, Commerce and Industry Minister Piyush Goyal announced on Friday. The decision marks a clear thaw in bilateral relations that had deteriorated sharply following serious allegations made by the previous Canadian government regarding India’s alleged involvement in the killing of Khalistani separatist Hardeep Singh Nijjar in 2023.
The earlier negotiations, which had progressed through several rounds after being re-launched in March 2022 for an interim Early Progress Trade Agreement, were abruptly paused by Canada in late 2023 amid the worst diplomatic crisis between the two nations in decades. The impending restart of talks signals a pragmatic shift under Canada’s new leadership and a mutual recognition of the substantial economic opportunities that a comprehensive trade pact could unlock for both countries.
Addressing the Annual General Meeting of the Federation of Indian Chambers of Commerce & Industry (FICCI), Minister Goyal confirmed that technical-level discussions will commence next week to lay the groundwork for full-scale CEPA negotiations. A CEPA goes beyond traditional free trade agreements by substantially reducing or eliminating tariffs on the maximum possible goods, liberalising services trade, easing movement of skilled professionals, protecting investments, and strengthening regulatory cooperation across multiple sectors.
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Recent trade data reflects growing commercial interdependence despite political turbulence: India’s exports to Canada rose nearly 10 per cent to USD 4.22 billion in 2024-25, while bilateral goods and services trade has remained robust at over USD 18 billion. With more than 427,000 Indian students and a 2.9-million-strong Indian diaspora in Canada, people-to-people ties continue to serve as a strong foundation for rebuilding broader bilateral engagement.
The renewed momentum follows a constructive meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G7 Summit in Kananaskis in June this year, which laid the political groundwork for restoring normalcy. As both nations prepare to re-engage at the negotiating table, the prospective India-Canada CEPA is being viewed as a strategic opportunity to deepen economic partnership and counterbalance uncertainties in global trade architecture.
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