Canada’s trade talks with India are making “great headway” and could conclude within months, Canadian International Trade Minister Maninder Sidhu said on September 22, 2026, as Ottawa races to diversify exports away from a tariff-strained United States. Sidhu’s comments came after the fourth round of negotiations on the India-Canada Comprehensive Economic Partnership Agreement (CEPA) wrapped up, with a fifth round scheduled to begin October 5 and run for five days.
Speaking to Bloomberg TV, Sidhu said Canadian exports to non-U.S. markets have already risen roughly 17%, or about $33 billion, as the country pivots toward partners like India amid an ongoing trade dispute with Washington. A completed CEPA would give Canadian exporters preferential access to India’s market for goods ranging from agricultural products to critical minerals, while opening India’s services and skilled-labour sectors to deeper engagement with Canada.
Why Is the India-Canada CEPA Gaining Momentum Now?
The renewed urgency traces directly to Canada’s strained trade relationship with the United States, which has pushed Ottawa to widen its export base. India, with a market of over 1.4 billion people and one of the world’s faster-growing major economies, has emerged as a priority partner. Four rounds of CEPA talks have now been completed, and negotiators on both sides have signalled they want to lock in a deal before shifting global trade dynamics complicate the calculus further.
What Do Trade Officials Say?
Sidhu described the talks as “moving along really well” and reiterated Canada’s ambition to reach a conclusion “in the coming months.” Indian commerce officials have similarly signalled openness to a swift conclusion, framing Canada as a natural partner for diversifying India’s own trade relationships beyond the US and EU at a time when Washington’s tariff posture remains unpredictable and the India-EU FTA still faces unresolved issues over steel and carbon levies.
Market and Trade Reaction
Sectors likely to be directly affected include Indian pharmaceuticals, textiles and IT services, which could gain preferential access to the Canadian market, while Canadian agricultural exporters — particularly pulses, canola and potash producers — stand to benefit from lower tariffs into India. Indian critical minerals and clean-technology firms are also watching the talks closely, given Canada’s position as a major global supplier of lithium, nickel and other battery inputs.
What Happens Next?
The fifth round of CEPA negotiations begins October 5 and runs for five days, with both sides aiming to resolve outstanding issues around tariff schedules, rules of origin and services market access. If momentum holds, officials on both sides have floated a conclusion timeline before the end of the current fiscal year, though neither government has committed to a binding deadline.
Frequently Asked Questions
What is the India-Canada CEPA?
The Comprehensive Economic Partnership Agreement (CEPA) is a proposed free trade pact between India and Canada aimed at reducing tariffs and expanding market access in goods, services and investment between the two countries.
When is the next round of India-Canada trade talks?
The fifth round of negotiations is scheduled to begin on October 5, 2026, and will run for five days.
Why is Canada prioritising a trade deal with India now?
Canada is seeking to diversify its exports away from the United States amid an ongoing tariff dispute, with non-U.S. exports already up about 17%, or $33 billion, making India a key market for further diversification.
Leave a comment