Trade Notes

India's Finance Minister Nirmala Sitharaman is on a nine-day official visit to Canada and the United States (25 August to 2 September 2026). In Toronto on 26–27 August she co-chaired the first India–Canada Economic and Financial Dialogue with Canada's Finance Minister, François-Philippe Champagne. Both ministers reaffirmed the aim to conclude the Comprehensive Economic Partnership Agreement (CEPA) — a free trade agreement — in 2026, and said they are also working toward a Foreign Investment Protection Agreement (FIPA) by year-end. They restated the goal of roughly doubling trade: two-way merchandise trade was about US$8 billion in 2025-26 (Indian exports US$4.67 billion, Indian imports US$3.28 billion), with a target near US$50 billion by 2030. Canada's finance minister called the two economies ‘uniquely complementary’ — Canada offering energy, food and critical minerals, and India offering scale, talent and technology.

The United States and Canada are now in an open tariff conflict. The US has imposed tariffs of up to 50% on Canadian goods, and on 25 August 2026 Canada announced retaliatory countermeasures of up to 50% on a list of US products, together with support for affected Canadian workers and businesses. Prime Minister Mark Carney has described the situation in stark terms as a trade ‘war.’ This is a dispute between Canada and the United States: it applies to trade across the Canada–US border and does not change the duties Canada charges on goods imported from India.

Canada and India are negotiating a Comprehensive Economic Partnership Agreement (CEPA). Prime Ministers Mark Carney and Narendra Modi agreed to launch the talks on 23 November 2025. Canada then ran public consultations from 13 December 2025 to 27 January 2026, and both sides signed the Terms of Reference on 2 March 2026. Three formal rounds have now concluded: the second in New Delhi (4 to 8 May 2026) and the third in Ottawa (6 to 10 July 2026). Both governments say they aim to conclude the negotiations in 2026, with a longer-term goal of about $50 billion in two-way trade by 2030. For now, nothing has changed at the border. There is no agreement in force, so goods of Indian origin are still classified and dutied under the current Canadian Customs Tariff, and two-way trade actually fell about 8 percent in 2025-26. If a deal is reached, it could phase out tariffs on many products and set new rules of origin, but only after the text is signed, ratified, and given an entry-into-force date.

India's Central Board of Indirect Taxes and Customs (CBIC) has ordered a high-priority special drive to dispose of unclaimed, uncleared, seized and confiscated cargo at major ports and ICDs/CFS by 31 October 2026. The goal is to free storage space, improve container availability (especially reefers), and ease congestion that has been worsened by West Asia shipping disruptions and vessel schedule issues, particularly at West Coast hubs.

As of August 2026, Canada and India do not have a comprehensive trade agreement in force. The two governments have resumed negotiations toward a Comprehensive Economic Partnership Agreement and have stated an objective of concluding negotiations in 2026. Until an agreement is implemented, importers must use the current Canadian Customs Tariff. Duty depends on the product's tariff classification, origin and applicable tariff treatment.

Commercial importers use the CBSA Assessment and Revenue Management (CARM) system to account for and pay duties and taxes. To use Release Prior to Payment (RPP) - getting your goods released before you pay - you must post your own financial security, such as a surety bond or cash deposit, through your CARM account.

For a first order, treat less-than-container-load (LCL) ocean shipping from major Indian ports such as Nhava Sheva or Mundra to Canadian gateways as a wide window once you add production handoff, consolidation, ocean transit, and customs clearance. Real times vary by lane, season, and your forwarder.

Under Canada's Consumer Packaging and Labelling Act, core label information such as the product's identity and net quantity generally must appear in both English and French, using metric units, for many pre-packaged consumer products sold in Canada.