India and Canada have finalised the Terms of Reference (ToR) for launching the negotiations of the proposed Comprehensive Economic Partnership Agreement (CEPA) with the aim of deepening bilateral economic ties. This was part of the agenda of Canadian Prime Minister Mark Carney’s visit to India. Both the countries aim at achieving a bilateral trade target of $50 billion by 2030. Canada’s Minister of International Trade Maninder Sidhu also had a meeting with Commerce Minister Piyush Goyal on Monday. Canadian ministers were on a visit to India from February 27 -March 2.
The ToR lays down the framework, scope, frequency and modalities for negotiations, providing a structured roadmap for discussions on trade in goods and services, alongside other agreed policy areas. “Discussions focused on advancing the India-Canada CEPA engagement and ensuring a fair and balanced outcome. Both sides reaffirmed their commitment to work to strengthen the overall bilateral economic partnership,” said Goyal.
The proposed trade agreement is likely to address tariff liberalisation, market access, regulatory co-operation and potential collaboration in emerging sectors, and also address issues on several policy areas to ensure better goods and services trade.
Canada aims to supply liquefied natural gas (LNG), liquefied petroleum gas (LPG), and crude oil to India, while India is seeking stable markets, and secure access to energy and critical minerals. At present, Canada does not export crude oil or LNG directly to India. According to the Global Trade Research Initiative (GTRI), Canada can also explore to expand its markets for uranium exports beyond the United States.
The bilateral merchandise trade between India and Canada went up by more than 50% in the last five years with the trade touching $8.69 billion in 2024-25. Key exports from India to Canada include drugs & pharmaceuticals, iron & steel, seafood, cotton garments, electronic goods and chemicals among others. Key imports of India from Canada include pulses, pearls & semiprecious stones, coal, fertilizer, paper and petroleum crude.
Key sectors of India’s services exports to Canada include telecommunications, computer and information services, and other business services. These sectors hold significant future growth potential and are expected to expand further following the conclusion of the trade agreement.