Canada Eager to Finalize Trade Agreement with India as Fifth CEPA Round Commences: Key Agenda Items
India and Canada are set to resume negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in Ottawa from October 5 to 9. This marks the fifth round of talks aimed at finalizing the trade deal by the end of 2026. Both nations are eager to enhance trade and investment ties following a period of diplomatic tension. Key discussion areas include energy, critical minerals, aerospace, and artificial intelligence.
Canadian International Trade Minister Maninder Sidhu expressed optimism about concluding the CEPA, emphasizing the importance of recent discussions with Indian Commerce Minister Piyush Goyal. Sidhu noted that the negotiations build on momentum from his recent visit to Mumbai and discussions at the G20 summit. The backdrop of strained trade relations with the U.S. over tariffs has intensified the urgency for both countries to strengthen their economic ties through the CEPA.
What’s on the Agenda?
Energy cooperation is a primary focus for Canada, which aims to support India’s growing energy needs. Sidhu highlighted that India’s economy is expanding at 7% annually, leading to a projected 70% increase in energy demand by 2035. Canada is prepared to meet this demand, with significant investments in liquefied natural gas (LNG) projects, including a $33 billion investment in LNG Canada Phase 2, which is set to become the second-largest facility of its kind globally.
Critical minerals also feature prominently in the negotiations, with both countries looking to diversify their supply chains. Sidhu pointed out Canada’s potential as a long-term supplier to India, particularly as demand for energy and critical minerals rises. The Canadian minister emphasized the importance of collaboration across various sectors, including aerospace and research.
Fifth Round of CEPA
The upcoming round in Ottawa follows four previous rounds, the latest of which concluded in New Delhi on September 18. The discussions are a continuation of talks between Sidhu and Goyal, who met at the G20 trade ministers’ meeting in Milwaukee. Both officials are focused on reaching a mutually beneficial agreement by the end of 2026, with Canadian officials aiming to maintain momentum and address outstanding differences.
Following the Ottawa negotiations, Sidhu will lead a Canadian trade mission to India from October 12 to 17, which is expected to include nearly 300 delegates from various sectors. This initiative aims to foster new business opportunities and strengthen commercial ties between the two countries.
India-Canada Trade: Going by the Numbers
Trade figures illustrate the scale of the economic relationship, although data from both governments vary. According to Canadian government statistics, bilateral merchandise trade reached $13.6 billion in 2025, with Canadian exports to India valued at $3.9 billion. Major exports included vegetables, mineral fuels, and wood pulp, while imports from India totaled $9.7 billion, primarily consisting of precious stones, machinery, and pharmaceuticals.
Services trade is even more significant, with Canadian services exports to India valued at $15.2 billion in 2025, largely driven by education-related travel. The Indian commerce ministry reported bilateral trade at approximately $8 billion for FY 2025-26, with India exporting goods worth $4.67 billion and importing $3.28 billion. The CEPA negotiations are part of Canada’s strategy to diversify its trade and reduce reliance on the United States.
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