India and Canada are working towards concluding negotiations on the proposed Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026, the Ministry of External Affairs (MEA) informed Parliament on Friday, signalling continued progress in bilateral trade relations after diplomatic ties resumed last year.

In a written reply in the Rajya Sabha, Minister of State for External Affairs Kirti Vardhan Singh said both countries have completed three rounds of negotiations, with the latest round held in Ottawa from July 6 to July 10, 2026.

The minister said discussions have advanced across multiple negotiating areas and both governments are working towards completing the agreement by late 2026.

Trade Pact to Boost Economic Cooperation

According to the MEA, the proposed CEPA is aimed at establishing a comprehensive free trade framework between India and Canada by reducing or eliminating tariffs and other trade barriers.

The agreement also seeks to facilitate greater trade in goods and services, improve investment flows, strengthen supply chains, enhance transparency in trade regulations, and deepen overall economic cooperation.

Officials believe the pact could significantly expand bilateral trade while creating new opportunities for businesses, exporters and investors in both countries.

Negotiations Gain Momentum

The government said negotiations have resumed at a steady pace following the restoration of diplomatic engagement between the two nations.

The three completed negotiation rounds have covered several chapters of the proposed agreement, including market access, trade facilitation, investment, services and regulatory cooperation.

Officials from both sides are expected to continue discussions over the coming months to resolve outstanding issues before the targeted conclusion next year.

Relations Improve After Diplomatic Reset

The MEA highlighted that India-Canada relations have witnessed positive momentum since the normalisation process began in June 2025.

A key milestone came during the G7 Leaders' Summit in Evian, France, where Prime Minister Narendra Modi met Canadian Prime Minister Mark Carney on June 16, 2026.

During the meeting, both leaders reviewed progress made in restoring bilateral engagement and expressed satisfaction over the improving relationship between the two countries.

Diplomatic Engagement Restored

The government said several confidence-building measures have already been implemented following the diplomatic reset.

These include:

• Restoration of High Commissioners in New Delhi and Ottawa.

• Gradual rebuilding of diplomatic staff at both missions.

• Resumption of bilateral dialogue mechanisms across multiple sectors.

• Revival of high-level political and official exchanges.

The MEA stated that these developments have created a conducive environment for advancing negotiations on the trade agreement.

Strategic Importance of CEPA

A comprehensive trade agreement is expected to strengthen commercial ties between two major economies that already share growing cooperation in education, technology, agriculture, clean energy and innovation.

Canada remains an important destination for Indian exports and investments, while India represents one of Canada's fastest-growing trade and investment partners in the Indo-Pacific region.

Industry experts believe a successful CEPA could improve market access for businesses, reduce trade costs and encourage greater cross-border investment while enhancing long-term economic cooperation.

With negotiations progressing and diplomatic relations stabilising, both countries are aiming to conclude the agreement before the end of 2026, potentially opening a new chapter in India-Canada economic relations.