India and Canada Re-assess Scope of Trade Pact as Bilateral Talks Regain Momentum
India–Canada Trade Talks Regain Momentum as Both Sides Review Deal Framework
Reporting from New Delhi — December 16, 2025
By TGV World News Correspondent
TGV World News Desk
New Delhi:
India and Canada have taken fresh steps toward reviving long-stalled trade agreement negotiations, with officials from both countries reassessing the scope and structure of a proposed pact that could significantly deepen bilateral economic ties. The move signals a cautious but notable reset in relations after talks were paused in 2023 amid diplomatic tensions.
According to officials familiar with the discussions, the reassessment aims to determine how a renewed agreement can reflect current global trade realities, supply-chain shifts and evolving economic priorities on both sides. The initiative comes at a time when countries worldwide are seeking to diversify trade partnerships in response to geopolitical uncertainty and slowing global growth.
India’s Commerce Secretary Rajesh Agrawal confirmed that exploratory discussions are underway, emphasizing that both governments are examining earlier frameworks to decide the best way forward. A report by The Times of India noted that officials are reviewing objectives and market access issues before formally restarting negotiations.
🔗 Source: https://timesofindia.indiatimes.com/business/india-business/india-canada-assess-trade-pact-scope/articleshow/125993527.cms
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📉 Background: Talks Put on Hold
India and Canada had been negotiating a Comprehensive Economic Partnership Agreement (CEPA), a broad trade framework covering goods, services and investment. However, formal talks were suspended in 2023 after bilateral relations deteriorated due to political and diplomatic disputes.
Despite the pause, trade between the two countries continued, underscoring the economic logic behind renewed engagement. India remains one of the world’s fastest-growing major economies, while Canada sees India as a key long-term market for exports, investment and strategic cooperation.
Diplomats say recent behind-the-scenes engagements reflect a recognition on both sides that economic cooperation should not remain hostage to political disagreements indefinitely.
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📊 What Is Being Re-assessed?
Officials involved in the process say the current exercise is not a resumption of full negotiations but a re-evaluation of scope. This includes examining:
📦 Tariff reductions on select goods
🛠 Market access for services sectors
💼 Investment facilitation and protection
📑 Trade facilitation and regulatory cooperation
Analysts say the reassessment reflects how much global trade has changed since talks were last active, including disruptions caused by geopolitical conflicts and supply-chain realignments.
According to The Indian Express, policymakers are considering whether a phased or limited agreement could precede a broader deal, allowing both sides to build confidence gradually.
🔗 Source: https://www.indianexpress.com/article/india/india-canada-resume-trade-pact-talks-10383888/
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🌐 Strategic Importance for India
For India, renewed engagement with Canada fits into a wider strategy of expanding trade ties with major economies. New Delhi has in recent years signed or negotiated trade agreements with multiple partners, aiming to boost exports, attract investment and integrate more deeply into global value chains.
Canada offers India access to advanced technology, clean energy expertise and a stable investment environment. Indian businesses, particularly in information technology, pharmaceuticals and manufacturing, see potential growth opportunities in the Canadian market.
Officials also note that a revived trade pact could help strengthen economic resilience by reducing dependence on a narrow set of trading partners.
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🇨🇦 Canada’s Perspective
From Canada’s standpoint, India represents a critical growth market at a time when global trade patterns are shifting. Canadian exporters — especially in agriculture, energy, education and services — have long advocated for improved access to the Indian market.
Ottawa has signaled that economic engagement with India remains a priority, even as political differences persist. Canadian policymakers view trade as a stabilizing force that can support broader bilateral relations over the long term.
Experts say Canada’s interest is also shaped by competition, as other countries deepen their economic footprint in India through trade agreements and strategic partnerships.
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📈 Trade Despite Tensions
Despite diplomatic strains, bilateral trade between India and Canada has shown resilience. Trade volumes have fluctuated but remained significant, highlighting strong underlying demand and commercial linkages.
Economists argue that a structured trade agreement could unlock further growth by reducing uncertainty for businesses and investors on both sides. It could also encourage greater collaboration in emerging areas such as digital trade, clean technology and innovation.
According to The New Indian Express, Indian and Canadian officials have indicated that early-stage consultations could pave the way for more formal negotiations once a common understanding is reached.
🔗 Source: https://www.newindianexpress.com/business/2025/Nov/28/india-canada-to-start-discussions-to-resume-trade-pact-talks-piyush-goyal
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🧠 Expert Views
Trade experts caution that while the reassessment is a positive signal, significant challenges remain. Differences over market access, regulatory standards and domestic political sensitivities could complicate negotiations.
“Re-evaluating the scope is a sensible first step,” said one trade analyst. “It allows both sides to test the waters without committing to timelines that may be difficult to meet.”
Others note that global economic uncertainty could add urgency to talks, as governments look for ways to stimulate growth and protect supply chains.
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🔮 What Happens Next?
Officials say discussions are expected to continue over the coming months, with technical teams working to identify common ground. A formal restart of negotiations would likely depend on political clearance from both governments.
While there is no fixed timeline, the reassessment itself marks a shift from stalemate toward engagement — a development closely watched by businesses and investors in both countries.
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📌 Conclusion
The decision by India and Canada to reassess the scope of their proposed trade pact reflects a pragmatic recognition of economic realities. While political challenges remain, renewed dialogue suggests both sides see value in rebuilding economic cooperation.
If successful, a revived trade agreement could not only strengthen bilateral ties but also signal a broader willingness to separate economic engagement from diplomatic disputes — a lesson increasingly relevant in a fragmented global economy.
