India, Canada conclude second round of free trade talks in Delhi, next talks in July

UNion mercantilism government minister Piyush Goyal is potential to see Canada on May 25 to fortify bilateral trade and investment ties, as India and Canada on Friday concluded the second round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) aimed at boosting bilateral trade to $50 billion.The second round of negotiations for the proposed CEPA was held from May 4 to 8 at Vanijya Bhawan in New Delhi, the Commerce and Industry Ministry (MoCI) said.The discussions were held in accordance with the terms of reference (ToR) signed by the trade ministers of both countries in March 2026. During the ToR signing on March 2, the prime ministers of both countries set a goal of achieving $50 billion in bilateral trade by 2030 through the proposed free trade agreement (FTA).The India-Canada CEPA holds significant potential to unlock and expand bilateral trade, which stood at $8.66 billion in 2024-25, the ministry said in a statement issued that day.“The negotiations witnessed constructive and productive engagement between the two sides. India and Canada reaffirmed their shared commitment to advancing a balanced, ambitious, and mutually beneficial agreement aimed at strengthening bilateral trade and economic ties,” the ministry said in a statement.Detailed discussions were held across a wide range of chapters, including trade in goods, trade in services, intellectual property, rules of origin, sanitary and phytosanitary (SPS) measures, and technical barriers to trade (TBT), among others, it said.The formal third round of FTA negotiations will be held in July 2026 in Ottawa. The chief negotiators of the two countries are Indian commerce department joint secretary Brij Mohan Mishra and Canadian official Bruce Christie.The two countries will, however, continue intersessional engagements in the interim. “Both sides agreed to continue negotiations in a constructive and cooperative spirit and looked forward to the next round of discussions,” the statement said.According to the latest government data, merchandise trade between India and Canada fell to $7.92 billion in FY26 from FY25 due to a decline in India’s imports from Canada. India exported goods worth $4.67 billion in 2025-26, registering about 10.6% growth compared to $4.22 billion in 2024-25. It imported goods worth $3.25 billion in 2025-26, compared to $4.45 billion in 2024-25, registering a decline of about 37%.India’s key exports to Canada include pharmaceuticals, gems and jewellery, marine products, iron and steel, chemicals, garments, and electronic and electrical goods. Main imports from Canada include pulses, aircraft and parts, ores and minerals, fertilisers, newsprint, pulp, and paper.