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India and Canada Sign Trade Facilitation Agreement to Resume CEPA Negotiations.

International | Dated: 21 Nov 2025

India and Canada signed a "Trade Facilitation Agreement" in New Delhi, marking a significant step toward normalizing trade relations and paving the way for the resumption of negotiations on the Comprehensive Economic Partnership Agreement (CEPA). The agreement focuses on simplifying customs procedures, increasing transparency, and reducing bureaucratic hurdles for businesses. This progress comes after a prolonged freeze in high-level trade talks due to geopolitical tensions. The FTA (CEPA) is crucial for both nations, especially for India to access Canada's vast resource market and for Canada to tap into India's growing consumer market.

🎯 Key Highlights:

  • The agreement is a "Trade Facilitation Agreement" to normalize trade relations.
  • The signing paves the way for the resumption of CEPA (Comprehensive Economic Partnership Agreement) negotiations.
  • The agreement focuses on simplifying customs procedures and reducing bureaucratic hurdles.

💡 Other Important Facts:

  • Bilateral trade ties had been strained due to diplomatic issues since 2023.
  • The Trade Facilitation Agreement is crucial for business confidence and investment flow.
  • The resumption of talks suggests a political de-escalation between the two countries.

📚 Test Your Knowledge:

The agreement between India and Canada aims to resume negotiations for which major trade pact?

Correct Answer: CEPA

🚀 Quick Recap:

About India-Canada Trade

  • (i) CEPA Goal: Comprehensive Economic Partnership Agreement (ii) Focus: Trade in Goods, Services, Investment, and Intellectual Property.
  • (iii) Canadian Exports: Minerals, coal, and potash. (iv) Indian Exports: Textiles, pharmaceuticals, and IT services.