VOI World/ Astha Pandey
India and Canada have formally agreed to restart negotiations on a Comprehensive Economic Partnership Agreement (CEPA), marking a major thaw after more than two years of strained ties. The decision was announced following high-level meetings in New Delhi, where both sides signalled a willingness to rebuild trust and push for a deeper, future-oriented economic partnership.
The talks were earlier suspended in the year 2023 after diplomatic tensions escalated over allegations made by Canada’s then-leadership claims, which India dismissed as absurd. The freeze halted what had been an active negotiation process. However, from mid-2025 a series of ministerial engagements and a meeting between Prime Minister Narendra Modi and Canada’s Prime Minister Mark Carney at the 2025 G20 have helped reset the political equation, clearing the ground for this fresh attempt to revive CEPA.
Unlike previous rounds, the restarted CEPA talks are set to cover a much wider canvas. The agenda now spans trade in goods and services, investment rules, agriculture and agri-food collaboration, digital trade frameworks, mobility pathways, and sustainable development. Both sides are also building in new areas of cooperation that reflect current global priorities including critical mineral supply chains, clean-energy technologies, aerospace and defence manufacturing, civil-nuclear cooperation, and advanced research partnerships.
With bilateral trade hovering between USD 18-23 billion in 2024, both countries are now targeting a dramatic expansion, aiming to push the figure to USD 50 billion by 2030. For India, which is actively diversifying trade partners and strengthening global manufacturing linkages, Canada’s resource depth and technological capabilities offer significant value. For Canada, India’s scale both as a consumer market and a knowledge-driven economy, represents a long-term strategic opportunity.
The willingness to relaunch CEPA negotiations reflects a pragmatic recognition on both sides: economic complementarities are too large to ignore. Canada is one of the world’s largest holders of critical minerals crucial for batteries and clean-energy transitions, while India is a major potential manufacturing hub for the same sectors. Similarly, Canadian investors have long been active in India’s infrastructure and technology ecosystem; a smoother regulatory environment under CEPA could accelerate this.
However, for global trade watchers, the CEPA reboot is particularly notable because it marks a shift toward broad-spectrum trade agreements that reflect 21st-century
priorities not just tariff negotiation, but technology cooperation, supply-chain security, and sustainability. Despite the renewed momentum, both sides will also need to navigate domestic political pressures, while ensuring that the spirit of diplomatic restoration holds fi rm throughout the negotiation process.
