India, Canada to Initiate First Round of Free Trade Agreement Talks in April or May

India and Canada to Hold First Round of Formal Talks for Proposed Free Trade Agreement

Key Highlights

• The first round of formal talks for the proposed Comprehensive Economic Partnership Agreement (CEPA) between India and Canada is expected to take place in April or May.
• The two countries aim to conclude the agreement by the end of 2026 and significantly expand bilateral trade, which currently stands at under $10 billion in goods annually.
• The trade negotiations mark a reset in India-Canada economic ties after relations had deteriorated in 2023 following diplomatic tensions.

Background

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India and Canada signed the Terms of Reference for CEPA earlier this month, formally launching negotiations for the pact during Canadian Prime Minister Mark Carney's visit to New Delhi. The two countries aim to increase bilateral trade to about $50 billion by 2030 as part of the proposed CEPA framework.

Progress on Other Trade Agreements

Separately, a government official stated that India's free trade agreement with the United Kingdom is expected to become operational in April, with the ratification process by the UK Parliament expected to be done by then. The Comprehensive Economic and Trade Agreement (CETA) was signed in July 2025 after nearly three years of negotiations. The pact will eliminate tariffs on the majority of goods traded between the two countries once it enters into force.