India and Canada Set to Launch High-Stakes Free Trade Negotiations in Early 2026

India and Canada will start formal talks for a major free trade deal early next year. A senior official confirmed negotiations will begin in the first quarter of 2026. The goal is to create a comprehensive economic partnership agreement.

This move signals a full reset in bilateral ties after a period of diplomatic strain. The announcement follows a meeting between the two countries’ prime ministers last month. Both leaders have expressed high confidence in the deal’s potential.

Ambitious Goals and a Crowded Negotiation Calendar

The planned agreement is described as “high ambition.” According to statements, it aims to more than double two-way trade. The target is to reach 70 billion Canadian dollars by the year 2030.

Both nations have recent experience with similar pacts. India has secured deals with the UK and Australia. Canada has finalized agreements with countries like Indonesia.

This experience should help speed up the process. However, officials note “capacity constraints” pose a challenge. Both countries are simultaneously managing other complex trade discussions.

A Path Forged Through Diplomatic Repair

The decision to pursue a full trade deal marks a significant shift. Previous talks for an Early Progress Trade Agreement were paused in 2023. That pause coincided with a major diplomatic dispute between the two nations.

Relations have improved markedly since new leadership took office in Canada. A bilateral meeting in June 2024 broke the ice. The relationship has gained steady momentum since that encounter.

A visit by the Canadian Prime Minister to India is planned for early 2025. This trip is expected to give the trade initiative a further boost. The focus is now squarely on future economic cooperation.

The launch of India-Canada free trade deal negotiations represents a pivotal turn. It underscores a shared commitment to long-term economic partnership. Finalizing this agreement could redefine bilateral ties for decades to come.

Info at your fingertips

Q1: When will India-Canada free trade talks officially begin?

Formal negotiations are scheduled to start in the first quarter of 2026. A senior official indicated talks could begin as early as January. The process was agreed upon by both governments in late 2024.

Q2: What is the main economic goal of the proposed trade deal?

The primary goal is to more than double the value of two-way trade. Leaders aim to boost annual trade to 70 billion Canadian dollars. The target date for achieving this is 2030.

Q3: Why were earlier trade talks between the two countries paused?

Previous discussions for a smaller deal were paused in August 2023. This occurred shortly before a major diplomatic dispute erupted. Relations have since recovered, allowing for new, more ambitious negotiations.

Q4: How might this deal impact businesses in both countries?

The agreement would create more predictable trade rules and reduce barriers. It should open new opportunities for exporters and investors in both nations. Canadian companies are already among the largest foreign investors in India.

Q5: What other trade deals are India and Canada currently negotiating?

Both countries have full negotiation calendars. India is also working on a pact with the European Union. Canada is engaged in talks with the ASEAN bloc and other nations.