The chief negotiators of India and Canada will begin the fifth round of negotiations for the proposed Comprehensive Economic Partnership Agreement (CEPA) in Ottawa from October 5 to 9, with an aim to conclude the talks by the end of this calendar year. According to The Times of India, Canadian International Trade Minister Maninder Sidhu announced that Canada is looking 'forward to conclude' the CEPA trade agreement with India. The negotiations are building on the momentum from Sidhu's visit to Mumbai two weeks ago and his discussions with Commerce Minister Piyush Goyal at the G20 trade ministers' meeting in Milwaukee last week. The bilateral ties have improved significantly, providing additional momentum for the trade negotiations as both countries 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 in the fifth round of CEPA negotiations. As reported by The Times of India, Sidhu highlighted Canada's potential to meet India's future energy requirements, noting that India's economy is growing 7% annually and its energy needs will climb 70% by 2035. Canada is ready to deliver with LNG Canada Phase 2 having received a $33 billion investment that will make it the second-largest facility of its kind globally. Within five years, Canada will be a top five LNG exporter. Critical minerals are another key area of cooperation, with Canada looking 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.
A key objective of the negotiations is to substantially increase bilateral trade, with Canada targeting an increase from $30 billion to $70 billion over the next five years. According to The Times of India, Sidhu said the discussions with Goyal are driving real progress toward an agreement that will double their two-way trade. Two-way trade in goods and services with India reached $30.4 billion in 2025, as per Canadian government data. However, according to commerce ministry data, 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. India's major exports to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals, while key imports include pulses, pearls and semi-precious stones, coal, fertilisers, paper and crude petroleum. India has received $4.8 billion foreign direct investments from Canada during April 2000 and June 2026.
Aerospace and artificial intelligence have also been identified as areas with potential for greater India-Canada cooperation. According to The Times of India, 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 services exports to Canada were valued at $15.2 billion in 2025, with education-related travel accounting for the largest component. Services account for an even larger share of bilateral trade, highlighting the scale of the economic relationship. The CEPA talks come as Canada seeks to diversify its international trade and reduce its heavy dependence on the United States, with Ottawa aiming to double exports to markets outside the US over the next decade.
The Ottawa negotiations will be followed by another Canadian commercial push into India, with Sidhu scheduled to lead a Team Canada trade mission from October 12 to 17, expected to bring nearly 300 Canadian delegates representing businesses across key sectors. As reported by The Times of India, this initiative aims to create new business opportunities and strengthen commercial ties between the two countries. The talks come as both India and Canada face strained trade ties with the US over higher tariffs, with India 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. The fourth round of CEPA negotiations concluded on September 18 in New Delhi, with negotiators working to maintain momentum and bridge outstanding differences toward concluding the talks before the end of this year.
