Terms of Reference Signed for India–Canada Comprehensive Economic Partnership Agreement

**Executive Summary** India and Canada have launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), with Terms of Reference (ToR) signed on March 2, 2026, to facilitate negotiations aimed at finalization soon. The agreement seeks to unlock economic potential and expand bilateral trade, with a goal of reaching US$50 billion by 2030. **Key Points / Main Content** * **Launch of Negotiations:** India and Canada officially launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in New Delhi. * **Terms of Reference (ToR):** The ToR for the CEPA negotiations were signed on March 2, 2026, by the Ministers of Commerce & Industry of India and International Trade of Canada. * **Agreement Objective:** The primary goal is to unlock the full potential of economic cooperation between India and Canada and finalize the CEPA soon. * **Bilateral Trade Target:** The ambition is for bilateral trade to reach US$50 billion by 2030. * **Negotiation Framework:** The ToR will define the format, frequency, and approach for the CEPA negotiations, guiding towards an ambitious, balanced, and mutually beneficial agreement. * **Historical Context:** The commencement of work on the ToR follows a leader's statement during a bilateral meeting at the G7 in Kananaskis, Canada, in October 2025. * **Scope of Negotiations:** Negotiations will encompass trade in goods, services, and other mutually agreed policy areas. * **Bilateral Trade Figures:** Bilateral trade stood at USD 8.66 billion in FY 2024-25, with exports from India to Canada at USD 4.22 billion and imports from Canada to India at USD 4.44 billion. * **Key Trade Items (India Exports to Canada):** Drugs & pharmaceuticals, iron & steel, seafood, cotton garments, electronic goods, and chemicals. * **Key Trade Items (Canada Exports to India):** Pulses, pearls & semiprecious stones, coal, fertilizer, paper, and petroleum crude. * **Key Services Sectors (India Exports to Canada):** Telecommunications, computer and information services, and other business services, with significant future growth potential. * **People-to-People Ties:** The CEPA is expected to reinforce the strong ties between Canada and the Indian community of over 425,000 Indian students and residents in Canada. **Impact Analysis** **Businesses Involved in Bilateral Trade** * **Impact:** These businesses will be affected by potential changes in tariffs, market access, and regulations governing trade in goods and services. The CEPA aims to unlock and expand bilateral trade, potentially leading to increased opportunities and reduced trade barriers. * **Action Required:** Businesses should familiarize themselves with the scope of the negotiations and any resulting changes in trade policies and regulations once the CEPA is finalized. **Indian Businesses in Service Sectors** * **Impact:** Indian businesses in telecommunications, computer and information services, and other business services are expected to benefit from significant future growth potential and expansion opportunities in the Canadian market as a result of the CEPA. * **Action Required:** Businesses in these sectors should be prepared to capitalize on the expanded market access and opportunities that the CEPA may provide. **Consumers in India and Canada** * **Impact:** Consumers may see increased availability and potentially lower prices for goods and services traded between the two countries, depending on the specifics of the agreement regarding tariffs and market access. * **Action Required:** Consumers can anticipate a broader range of products and services from both nations. **Indian Students and the Indian Community in Canada** * **Impact:** The conclusion of the CEPA is expected to further reinforce the strong people-to-people ties between India and Canada. * **Action Required:** This community may experience strengthened connections and continued mutual reinforcement of cultural and economic links.

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