Canada will begin formal negotiations for a free trade agreement (FTA) with India in February 2026, Canadian trade minister Maninder Sidhu confirmed on Tuesday. The announcement signals a renewed push by both countries to deepen economic engagement after trade talks stalled amid diplomatic tensions in recent years.
Sidhu said that Ottawa sees India as a key long-term economic partner and believes a comprehensive trade pact could unlock fresh opportunities for businesses in both markets.
The move follows months of quiet engagement aimed at rebuilding momentum in bilateral relations. Canada has also completed domestic consultations with industry groups, trade bodies, and provinces to firm up its negotiating priorities.
Officials say the timing reflects India’s growing economic weight and Canada’s broader strategy to diversify trade beyond its traditional partners. India and Canada had earlier explored a Comprehensive Economic Partnership Agreement (CEPA), but negotiations were paused in 2023 due to political strains.
While formal agendas will be finalised once talks begin, officials expect negotiations to span goods, services, investment, supply chains, and digital trade. Agriculture, clean energy, critical minerals, education services, and technology are likely to feature prominently.
Reducing tariffs, easing market access barriers, and creating clearer rules for investors will be central goals, according to people familiar with the discussions.
India is among Canada’s fastest-growing trading partners. Two-way trade has expanded steadily over the past decade, driven by pharmaceuticals, agricultural products, energy, education, and IT services. Business groups on both sides have long argued that an FTA could substantially lift trade volumes and investment flows.
Negotiating teams from both countries are expected to meet in February to set timelines and working groups. While trade deals typically take years to conclude, officials say early rounds will focus on building trust and identifying quick-win areas.
For India, the talks fit into its broader push to secure high-quality trade agreements. For Canada, they mark a strategic bet on one of the world’s fastest-growing major economies.