India, Canada complete second round of free trade talks; next negotiations in July

India and Canada have concluded the second round of negotiations for a proposed Free Trade Agreement (FTA), officially called the Comprehensive Economic Partnership Agreement (CEPA), following discussions held in New Delhi from May 4 to 8.In a joint statement issued after the talks, both sides described the negotiations as “constructive and productive” and reaffirmed their commitment to advancing a “balanced, ambitious and mutually beneficial” trade agreement aimed at strengthening bilateral economic ties.The discussions covered areas including trade in goods and services, intellectual property rights, rules of origin, sanitary and phytosanitary measures, and technical barriers to trade.Both countries agreed to continue negotiations in a “constructive and cooperative spirit”, with the next round of talks scheduled for July 2026 in Ottawa, Canada. Intersessional engagements between officials will continue in the interim.Government sources said India sees significant potential in expanding trade ties with Canada because the two economies are viewed as complementary rather than directly competitive in most sectors.Future negotiations are expected to focus on market access, labour mobility, education and broader policy cooperation.Canada, with a population of around 41.65 million and a GDP of about $2.34 trillion at purchasing power parity (PPP), remains an important trade partner for India.According to DGCI&S data, bilateral trade between the two countries stood at $8.66 billion in FY25, with India exporting goods worth $4.22 billion and importing goods worth $4.44 billion.India’s key exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronics and chemicals, while major imports include pulses, coal, fertilisers, crude oil and precious stones.India also exports significant services to Canada, particularly in telecommunications, information technology and business services.Commerce and Industry Minister Piyush Goyal is expected to lead a trade delegation to Canada later this month along with Indian business representatives.India and Canada had formally launched CEPA negotiations on March 2 in New Delhi after signing the Terms of Reference for the agreement in the presence of Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney.The two leaders have set a target of expanding bilateral trade to $50 billion by 2030.Canada is also home to more than 425,000 Indian students and a large Indian diaspora, which both countries say could further strengthen economic and people-to-people ties through the proposed trade pact.

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