Canada-India trade talks are on course to conclude by the end of 2026, according to Canada’s Minister of International Trade, Maninder Sidhu, who said on Saturday that he was optimistic a deal could be reached within months. Speaking during a visit to Mumbai, Mr Sidhu said he felt “very, very optimistic” about finalising a comprehensive economic partnership agreement (CEPA) between the two countries.
Timeline for the Canada India CEPA
The minister’s remarks reinforce a deadline set earlier this year. Prime Minister Mark Carney said during a visit to New Delhi in March that the two countries would aim to agree a free trade pact by the end of 2026. The visit, which ran from 27 February to 2 March, was Mr Carney’s first to India since taking office and the first bilateral visit by a Canadian prime minister since 2018, according to a joint statement issued by the two governments.
During that visit, both sides signed the Terms of Reference for the Canada India CEPA and formally launched negotiations, committing to conclude them by the end of the year.
Mr Sidhu outlined the next steps in the process. Indian trade negotiators are expected to travel to Canada next month, and leaders from both countries are likely to meet on the sidelines of the G20 gathering in December.
Energy at the Centre of Discussions
Energy remains one of the main areas of discussion. A Shell-led liquefied natural gas (LNG) export facility began operating in Canada last year, and the country has five further LNG projects at various stages of development.
Energy cooperation featured prominently in the outcomes of Mr Carney’s March visit. The two countries announced a Strategic Energy Partnership covering LNG, liquefied petroleum gas, uranium and other areas. A long-term uranium supply agreement valued at $2.6 billion was also announced between Saskatchewan-based Cameco and India’s Department of Atomic Energy, according to the Canadian government.
A Long Road to an India Canada Free Trade Agreement
The current push follows a protracted history. Negotiations on an India Canada free trade agreement were first launched in 2010, and ten rounds of talks were held. Discussions stalled between 2017 and 2022, were relaunched in 2022, and were interrupted again in 2023 amid a diplomatic dispute following the killing of Sikh separatist Hardeep Singh Nijjar.
Relations improved after Mr Carney became prime minister. He met Prime Minister Narendra Modi at the G7 Summit in Kananaskis in June 2025 and again at the G20 Summit in Johannesburg in November 2025, where the two sides agreed to begin talks on a “high-ambition” agreement. Sectors expected to be covered include goods, services, investment, agriculture and agri-food, digital trade and mobility.
Trade Targets and Economic Stakes
The leaders have set a goal of expanding bilateral trade to CAD 70 billion by 2030, as stated in their joint statement. Indian government messaging has used a target of US$50 billion by the same year, reflecting the different currencies used by each side. Bilateral trade exceeded US$30 billion in 2024.
Mr Sidhu has been a prominent figure in the engagement. He visited India in November 2025, when he met business groups including the Tata Group and HCL Technologies and held discussions on priority sectors such as critical minerals, innovation, agriculture and digital industries.
What Remains to Be Settled
Negotiators have a limited window to resolve outstanding issues before the year-end target. Neither government has publicly detailed the areas where differences remain, and the December G20 meeting is expected to offer a political opportunity to finalise terms. For now, the Canada-India trade talks are entering what both sides hope will be their closing stretch.
Published in SouthAsianDesk, September 21st, 2026
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