India and Canada Sign Terms of Reference for Comprehensive Economic Partnership Agreement (CEPA)

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Dated: 03.03.2026

India and Canada Sign Terms of Reference for Comprehensive Economic Partnership Agreement (CEPA)

India and Canada have taken a significant step towards strengthening their economic ties by launching negotiations for the Comprehensive Economic Partnership Agreement (CEPA). The Terms of Reference (ToR) for the CEPA were officially signed on March 2, 2026, in New Delhi by Shri Piyush Goyal, India’s Minister of Commerce & Industry, and Mr. Maninder Sidhu, Canada’s Minister of International Trade. The signing ceremony took place at Hyderabad House in the presence of Prime Minister Shri Narendra Modi and Canadian Prime Minister Mr. Mark Carney.

A Vision for Enhanced Bilateral Trade 

During the ceremony, Prime Minister Modi emphasized the ambitious goal of increasing bilateral trade between India and Canada to USD 50 billion by 2030. He highlighted the importance of unlocking the full potential of economic cooperation between the two nations. Prime Minister Carney echoed this sentiment, describing the agreement as a bold step forward in expanding the valued partnership between India and Canada. He noted that the CEPA reflects the shared ambition and foresight of two confident nations charting their own course for the future.

Key Features of the CEPA Terms of Reference 

The signed Terms of Reference will serve as a roadmap for the CEPA negotiations, outlining the format, frequency, and approach to discussions. The goal is to conclude an ambitious, balanced, and mutually beneficial agreement that covers trade in goods, services, and other policy areas agreed upon by both nations.

This milestone follows the leaders’ bilateral meeting during the G7 summit in Kananaskis, Canada, in October 2025, where they committed to finalizing the ToR for CEPA negotiations.

Unlocking Economic Potential 

Canada, with a population of 41.65 million (2025) and a GDP of USD 2.34 trillion at purchasing power parity (PPP), represents a significant market for India. Bilateral trade between the two countries stood at USD 8.66 billion in FY 2024-25, with India exporting USD 4.22 billion worth of goods and importing USD 4.44 billion from Canada.

India’s key exports to Canada include:

Drugs and pharmaceuticals
Iron and steel
Seafood
Cotton garments
Electronic goods
Chemicals

Canada’s major exports to India include:

Pulses
Pearls and semiprecious stones
Coal
Fertilizer
Paper
Petroleum crude

Expanding Services Trade 

India’s services exports to Canada, particularly in telecommunications, computer and information services, and other business services, hold significant growth potential. The CEPA is expected to further expand these sectors, fostering innovation and collaboration between the two nations.

Strengthening People-to-People Ties 

Canada is home to over 425,000 Indian students and a vibrant Indian community, which serves as a strong foundation for the relationship between the two countries. Prime Minister Modi referred to these ties as “One Family,” emphasizing that the CEPA will further reinforce the enduring bond between the people of India and Canada.

Conclusion

The India-Canada Comprehensive Economic Partnership Agreement represents a historic opportunity to deepen economic cooperation, expand trade, and strengthen the already robust ties between the two nations. With the Terms of Reference now signed, both countries are poised to work together to finalize an agreement that will unlock new opportunities for businesses and individuals alike.

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Source: Ministry of Commerce & Industry

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