India and Canada deepen trade talks with focus on energy and minerals
India and Canada have launched the fifth round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa. The discussions are centered on expanding economic ties, with Canada emphasizing energy, critical minerals, and aerospace cooperation as key areas for collaboration. Canadian International Trade Minister Maninder Sidhu highlighted that these talks aim to strengthen trade relations between the two nations, building on previous discussions held in Mumbai and during the G20 Trade Ministers Meeting.
Sidhu stated that the negotiations seek to increase bilateral trade from the current USD 30 billion to USD 70 billion over the next five years. He emphasized Canada's role in meeting India's future energy needs, noting that India's economy is growing at an annual rate of 7% and its energy requirements are projected to rise by 70% by 2035. Sidhu pointed to the USD 33 billion investment in LNG Canada Phase 2, which would make it the second-largest facility of its kind globally and position Canada as a top-five LNG exporter within five years.
Beyond energy, Canada is looking to deepen cooperation in critical minerals and aerospace. Sidhu described Canada as a reliable partner for India in these sectors, particularly in supply chain diversification. The two countries are also exploring collaboration in investment and research. The governments have committed to concluding the CEPA negotiations by the end of 2026, with the fifth round in Ottawa marking another step toward achieving this goal.
Bilateral trade between India and Canada stood at approximately USD 8 billion in the fiscal year 2025-26, with India exporting goods worth USD 4.67 billion and importing USD 3.28 billion, according to the Commerce Ministry.