New Delhi – The Comprehensive Economic Partnership Agreement (CEPA) between India and Canada is on track for conclusion by the end of this year, announced Canadian Foreign Minister Anita Anand during her recent visit to India. The push for this agreement is part of Ottawa's broader strategy to diversify its trade relationships and lessen its economic dependence on the United States, particularly in response to protectionist trade policies.
Strategic Diversification and Robust Negotiations
Speaking at the Canadian High Commission in New Delhi, Minister Anand emphasized that the CEPA with India is a cornerstone of Canada's trade diversification efforts. She stated, "yes, we aim to conclude it by the end of the year," highlighting the urgency and commitment behind the negotiations. Discussions have been progressing well, with Indian trade negotiators having recently visited Canada, and Canadian Trade Minister Maninder Sidhu leading a business delegation to India.
High-level talks have also bolstered the agreement's momentum. Prime Minister Justin Trudeau of Canada and Prime Minister Narendra Modi of India have discussed the pact, with Prime Minister Modi anticipated to visit Canada in December.
Economic Impact and Bilateral Growth
The proposed India-Canada CEPA is projected to significantly boost bilateral goods and services trade, potentially more than doubling it to $70 billion annually by 2030, a substantial leap from $30.4 billion recorded in 2025. Last year, goods trade between the two nations stood at $10.9 billion, with Canadian exports experiencing a decline of 26.5% from 2024, while imports from India saw an increase of 18.9%.
Beyond the CEPA, closer economic ties have already yielded significant deals. These include a $2.6 billion uranium supply agreement between Canadian company Cameco and India, signed earlier this year, and Fairfax Financial Holdings' agreement to acquire a majority stake in IDBI Bank for approximately $5.56 billion.
Rebuilding Ties Amidst Diplomatic Challenges
The pursuit of this trade agreement comes as India and Canada continue to rebuild their diplomatic relationship, which faced strain following the 2023 killing of Sikh separatist Hardeep Singh Nijjar in Canada. Minister Anand acknowledged that restoring relations is a gradual process, with national security and the rule of law remaining central to the ongoing dialogue.
Canada's ambition extends beyond India; it aims to double its non-US trade over the next decade. This includes strengthening economic ties with the European Union, China, and other countries, while maintaining strong cooperation with Washington on trade, defense, and security. "It is really about our national resilience and our sovereignty," Anand noted, underscoring the importance of avoiding over-reliance on any single nation.