Question Period Note: BILATERAL AGRICULTURAL TRADE WITH INDIA

Q1 - How is Canada responding to India’s decision to impose a 30% import duty on yellow peas?
Q2 - What does the recent October 13, 2025, Canada–India Joint Statement mean for our agricultural and agri-food partnership moving forward?
Q3 - Will trade irritants and barriers faced by Canadian exporters in the Indian market be resolved through the CEPA negotiations with India?
Q4 - How will the Government use trade negotiations with India to secure predictable trade of Canadian agriculture exports to India?

R1 - The Government of Canada is actively engaging on India’s decision to impose a global 30% import duty on yellow peas, which took effect November 1, 2025. We also recognize the potential impact that it will have on Canadian pulse farmers and exporters.
The Government of Canada remains fully engaged with industry, provincial partners, and Indian counterparts to assess the implications of India’s decision and ensure that Canadian agricultural interests are well represented. We continue to advocate for a predictable, transparent, and rules-based trade system that supports Canadian farmers and global food security, both at the World Trade Organization (WTO) and in a bilateral context. Through constructive dialogue and ongoing cooperation with India, Canada will keep advancing shared agricultural priorities, emphasizing mutual benefit and the need for a reliable access to international markets.
R2 - The Joint Statement signed by the Minister of Foreign Affairs and her Indian counterpart on October 13, 2025, marks a renewed phase in Canada–India relations. It reaffirms both countries’ commitment to advancing sustainable growth and food security through deeper collaboration in agriculture and agri-food.
The statement highlights shared priorities, such as strengthening resilient supply chains, enhancing agri-value chains, and promoting innovation in climate-smart agriculture, creating a platform to rebuild trust and expand practical cooperation.
R3 - We will continue to use every opportunity to address these priority issues. Through the negotiation of a CEPA, we will be seeking to ensure a more predictable and transparent bilateral trading environment.
R4 - The Government of Canada will use the renewed Canada–India Comprehensive Economic Partnership Agreement negotiations to seek more stable and predictable access for Canadian agricultural exports.

The Government of Canada will also seek trade obligations to enhance predictability in trade so that non-tariff measures do not function as trade barriers.

Agriculture exports to India

In 2024, India was Canada’s 6th largest market for agri-food and seafood products:

• Canadian exports were valued at CAD $1.4 billion (accounting for nearly 28% of Canada’s exports to this market).
• In 2024, Canada’s exports were up 74% from 2023, but lower than their peak of CAD 1.5 billion in 2015.
• Canada’s 2024 exports consisted primarily of pulses (CAD $1.4 billion), dried peas (CAD $789 million), dried lentils (CAD $604 million), and chickpeas ($6 million).
• Canada’s imports of agri-food and seafood products from India over the same period were valued at $1.2 billion, up 11% from 2023.
• Canada’s top 5 imports from India were crustaceans (17%), rice (14%), bread & pastry cakes (6%), processed seafood products (5%), and pulses (3%).

Pulse exports to India
As India’s second largest supplier of pulses, Canadian pulse exports are important for India to be able to address its growing need for safe and nutritious food. However, India faces significant domestic pressure to restrict imports of key crops – and Canada is concerned by India’s use of trade-restrictive measures, including high tariffs on lentils and import restrictions on dry peas.
The previous duty-free access for yellow peas, first announced in December 2023 and extended until March 31, 2026, has now been reversed. On October 29, 2025, India announced that effective November 1st, 2025, a 30% import duty on yellow peas, (10% Basic Customs Duty plus 20% Agriculture Infrastructure & Development Cess (AIDC)) will apply to peas from all trading partners. Consignments with a Bill of Lading dated on or before October 31, 2025, were exempted from these import duties.
With respect to non-tariff barriers, Canada has been seeking to improve access for pulses by working with India’s to recognize Canada’s “systems approach” to pest management in lieu of India’s requirement for fumigation. Canada and India implemented a trial period in March 2023. The final shipment of lentils under the pilot was cleared successfully in September 2025. Canada is now working with India toward formal recognition of the systems approach under India’s Plant Quarantine Order, which would permanently exempt Canadian lentils from fumigation requirements and serve as a model for other pulse commodities.

Effective February 20, 2024, India reduced import duties on fresh, dried, or frozen blueberries and cranberries (from 30% to 10%) for all trading partners, including the U.S which had a longstanding dispute at the WTO related to measures concerning the importation of certain agricultural products.

India’s Tariff Flexibility and Transparency at the WTO
Under WTO rules, India’s bound tariff rates for pulses (HS 07.13) are set at 100%, except for peas (HS 0713.10), which are capped at 50%. This allows India to adjust applied tariffs within those limits—ranging from 0–50% for peas and 0–100% for other pulses—without breaching its WTO commitments. As per WTO rules, India is not required to notify tariff changes in advance or provide lead time for importers, creating unpredictability for exporters. Canada has consistently raised concerns at the WTO about the lack of transparency and predictability in how certain WTO members, including India, make changes to their applied tariffs. This issue was also raised bilaterally with India on several occasions. Canada submitted a negotiation proposal meant to address this issue at the 12th WTO Ministerial Conference (Geneva, 2022), which India opposed.

Canada-India Trade Negotiations

Canada and India have a long history of trade negotiations. Between 2010-2017, ten rounds of negotiations were held towards a Canada-India Comprehensive Economic Partnership Agreement (CEPA), before negotiations stalled in 2017. In 2022, Canada and India re-launched CEPA negotiations, starting with a Canada-India Early Progressive Trade Agreement (EPTA), as a transitional step towards the CEPA. Nine rounds of negotiations were held until August 2023, when trade negotiations with India were paused. More recently, on November 23rd, 2025, Prime Ministers Carney and Modi announced the intent to launch negotiations towards a full CEPA. Both Canada and India’s Chief Negotiators have agreed to take a completely f+L33resh approach to negotiations, whereby new negotiations will not be an ‘un-pause’ of previous discussions, but a full restart. On November 24th, the Government of Canada tabled in Parliament its notice of intent to enter into these negotiations and subsequently launched public Gazette consultations. There is a 90-day waiting period between the tabling of the notice of intent and when negotiations can officially commence. This means that February 22nd, 2026, is the earliest that negotiations can begin.

• India is an important market for the Canadian agriculture and agri-food sector, particularly for Canadian pulses.
• The Prime Minister’s decision to launch negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) has the potential to unlock opportunities and stabilize trade with this important market for Canadian producers.
• We will always stand shoulder-to-shoulder with our farmers, producers, and workers who export safe, high-quality agri-food products around the world.
• Canada is disappointed by India's decision to impose a 30% import duty on yellow peas. Canada continues to advocate for stability in the trade environment.