Canada ‘looking forward’ to seal trade deal with India as fifth CEPA round begins: What’s on agenda
India and Canada will return to the negotiating table on Monday, with the fifth round of talks on the proposed Comprehensive Economic Partnership Agreement (CEPA) scheduled in Ottawa from October 5 to 9. Both sides are working towards concluding the trade deal by the end of 2026 as they seek to deepen trade and investment ties following a prolonged diplomatic chill.Energy, critical minerals, aerospace and artificial intelligence are among the key areas being discussed, with Canada looking to expand economic cooperation with India.Canadian International trade minister Maninder Sidhu said that Canada is looking “forward to conclude” the CEPA trade agreement with India. In a post on social media platform X, Sidhu said the fifth round of CEPA trade negotiations between Canada and India would begin in Ottawa, building on recent discussions between the two sides.“Tomorrow morning in Ottawa, Canada and India begin Round 5 of CEPA trade negotiations, building on the momentum from my visit to Mumbai two weeks ago and my discussions with minister Goyal at the G20.”The talks come as India and Canada face strained trade ties with the US over higher tariffs.India is facing increased US tariffs amid differences over Russian oil and a bilateral trade deal, while Canada is also facing higher tariffs after trade talks with Washington broke down in August. Both countries are therefore looking to strengthen trade ties through the CEPA.
What’s on agenda?
Energy: Canada pitches LNGEnergy is one of the key areas where Canada wants to deepen cooperation with India. Sidhu highlighted the country’s potential to meet India’s future energy requirements, noting that the economy is growing 7 per cent annually and its energy needs are expected to rise 70 per cent by 2035.“India’s economy is growing 7% a year, and its energy needs will climb 70% by 2035. Canada is ready to deliver. LNG Canada Phase 2 has received a $33 billion investment that will make it the second-largest facility of its kind in the world. Within five years, Canada will be a top five LNG exporter.”Critical minerals and supply chainsCritical minerals are another key area of cooperation, with India and Canada looking to diversify supply chains. Sidhu has highlighted Canada’s potential to become a long-term supplier to India as demand for energy, critical minerals and other commodities grows.At the G20 trade ministers meeting, the Canadian minister identified supply chain diversification, particularly in critical minerals, as an important area of cooperation. He added that the two countries could work together across energy, critical minerals, aerospace, investment and research.Aerospace and AIAerospace and artificial intelligence have also been identified as areas with potential for greater India-Canada cooperation.Sidhu pointed to Canada’s advantages in energy, critical minerals, aerospace and AI as areas that could create opportunities for businesses and workers in both countries.“India’s rapid growth and Canada’s advantage in energy, critical minerals, aerospace, AI and more mean enormous potential for our businesses and workers,” he said.Trade target: $70 billion by 2030A key objective of the negotiations is to substantially increase bilateral trade. At the G20 meeting, Sidhu said the two nations were targeting an increase in bilateral trade from $30 billion to $70 billion over the next five years.“My discussions with minister Goyal this week are driving real progress toward an agreement that will double our two-way trade to $70 billion by 2030,” Sidhu said after meeting Goyal in Mumbai last month.Canada said two-way trade in goods and services with India reached $30.4 billion in 2025.
Fifth round of CEPA
Four rounds of CEPA negotiations have already been completed, with the latest concluding in New Delhi on September 18.The upcoming Ottawa round follows a meeting between commerce and industry minister Piyush Goyal and Sidhu on the sidelines of the G20 trade ministers’ meeting in Milwaukee last week, where the two reviewed progress in the negotiations and discussed the fifth round. Sidhu stressed the importance of working towards a mutually beneficial agreement by the end of 2026 and had also discussed the fourth round of negotiations with Goyal during his recent visit to Mumbai.Canadian officials have said negotiators are working to maintain momentum and bridge outstanding differences, with the shared objective of concluding the talks before the end of this year.The Ottawa negotiations will be followed by another Canadian commercial push into India. Sidhu is scheduled to lead a team Canada trade mission from October 12 to 17, which is expected to bring nearly 300 Canadian delegates representing businesses across key sectors.Sidhu and Goyal discussed the trade mission during their Milwaukee meeting. Canada said that the initiative aims to create new business opportunities and strengthen commercial ties between the two countries.
India-Canada trade: Going by the numbers
Trade figures highlight the scale of the economic relationship, although figures cited by the two governments vary by trade category and measurement.According to Canadian government data, bilateral merchandise trade stood at $13.6 billion in 2025. Canadian merchandise exports to India were valued at $3.9 billion, led by vegetables, mineral fuels and oils, and wood pulp. Imports from India stood at $9.7 billion, with precious stones and metals, machinery and pharmaceuticals among the major categories.Services account for an even larger share of bilateral trade. Canada’s services exports to India were valued at $15.2 billion in 2025, with education-related travel accounting for the largest component.According to the commerce ministry bilateral trade between the two nations stood at around $8 billion in FY 2025-26, with India exporting goods worth $4.67 billion and importing $3.28 billion.The CEPA talks come as Canada seeks to diversify its international trade and reduce its heavy dependence on the United States.Ottawa has said it aims to double exports to markets outside the US over the next decade. Against this backdrop, India’s expanding economy is an increasingly important part of Canada’s trade diversification strategy.
