India and Canada Nearing Completion of Trade Deal by End-2026

India and Canada Target $50 Billion in Bilateral Trade by 2030

Commerce and Industry Minister Piyush Goyal expressed optimism about the progress of trade talks between India and Canada, stating that the two countries have the potential to conclude a trade agreement by the end of 2026. Speaking at an interaction with regional chambers in the India-Canada corridor in Ontario, Goyal emphasized the significance of services in the negotiations, citing India's strengths in talent and services as key pillars of discussion.

India's strengths in services and talent will form an important part of discussions with the Canadian trade minister, with Goyal noting that India has the numbers and talent to become an important service provider to Canada. The minister expressed confidence in the potential for a trade deal between the two countries, stating that there is scope to conclude an agreement before the end of the year.

India and Canada resumed negotiations for a Comprehensive Economic Partnership Agreement (CEPA) earlier this year after signing the Terms of Reference (ToR) for the proposed pact in March. The agreement aims to boost bilateral trade and investment by improving market access and addressing tariff and non-tariff barriers. The two countries have set an ambitious goal of tripling bilateral trade in goods and services to $50 billion by 2030 from the current level of about $17 billion.

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Goyal urged businesses to flag challenges they face while importing, exporting, or providing services, as such inputs help negotiators identify barriers and secure better outcomes for Indian businesses. He highlighted the importance of reciprocity in trade negotiations, citing feedback that companies need to be incorporated in Canada for five years before becoming eligible to bid for government contracts.

The minister noted that discussions with industry representatives covered sectors including artificial intelligence, mining, clean energy, critical minerals, e-waste management, agriculture, and tourism. He emphasized the importance of stronger educational ties, including a dual-degree program that would allow students to spend time studying in both countries.

According to Goyal, deeper collaboration in technology, services, education, and critical minerals could significantly strengthen the economic relationship between the two countries and help achieve their long-term trade ambitions.

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