India And Canada Advance CEPA Talks While Avoiding Sensitive Sectors Like Agriculture And Dairy

During his official visit to Canada in May 2026, Piyush Goyal met Prime Minister Mark Carney, Trade Minister Maninder Sidhu, and Canadian investors. He emphasised that negotiations should prioritise areas of convergence and avoid contentious sectors, ensuring a balanced agreement that benefits both economies.

Sensitive Sectors Excluded

India has clarified that agriculture and dairy products will not be part of CEPA discussions, given their domestic sensitivity. Canada will also exclude sectors where its local industries are vulnerable. This approach is designed to accelerate progress by focusing on mutually beneficial areas.

Trade And Investment Goals

India and Canada aim to triple bilateral trade from USD 17 billion to USD 50 billion by 2030. CEPA is expected to reduce tariffs, ease norms for services, and boost investment flows. Key sectors under discussion include innovation, clean energy, pharmaceuticals, biotechnology, education, finance, and critical minerals.

Engagements In Canada

Goyal met representatives of Canada’s Maple 8 pension funds, which manage over CAD 2.4 trillion in assets, inviting them to invest in India’s infrastructure, renewable energy, and technology sectors. He also engaged with academia and innovation centres, highlighting opportunities in AI, agritech, and deep tech.

Timeline For CEPA

The third round of CEPA negotiations took place in Ottawa in May 2026. Both sides expressed optimism about concluding the agreement by November 2026, ahead of the G20 Summit. Negotiators have been tasked to work in mission mode to finalise the pact.

Trade Pact Highlights

•⁠  ⁠India and Canada negotiating CEPA, avoiding sensitive sectors like agriculture and dairy

•⁠  ⁠Focus on technology, clean energy, services, and critical minerals

•⁠  ⁠Bilateral trade target set at USD 50 billion by 2030

•⁠  ⁠Maple 8 pension funds invited to invest in India’s infrastructure and renewables

•⁠  ⁠Third round of talks held in Ottawa, conclusion expected by November 2026

Sources: Business Standard, NDTV Profit, The Economic Times, Bloomberg, Canada.ca