India Canada CEPA Talks Focus on Energy and Critical Minerals

India and Canada are set to kick off the fifth round of negotiations for a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa. Canadian International Trade Minister Maninder Sidhu emphasized that the talks will focus on expanding cooperation in key sectors like energy, critical minerals, and aerospace. This round follows Sidhu's recent discussions with Union Commerce Minister Piyush Goyal, where both sides aimed to boost bilateral trade from $30 billion to $70 billion by 2031.

Sidhu highlighted Canada's readiness to meet India's growing energy demands, noting that India's economy is expanding at a 7% annual rate. He pointed to the $33 billion investment in LNG Canada Phase 2, which would make it the second-largest facility of its kind globally. Canada is positioning itself as a top-five LNG exporter within five years, aiming to be a reliable partner for India's future energy needs.

Beyond energy, Canada is seeking deeper collaboration in critical minerals and aerospace. The two countries are also exploring supply chain diversification, particularly in critical minerals, to strengthen their economic ties. Both governments have committed to concluding the CEPA negotiations by the end of 2026, with the fifth round marking another step toward their long-term trade ambitions.

Bilateral trade between India and Canada stood at around $8 billion in FY 2025-26, with India exporting goods worth $4.67 billion and importing $3.28 billion. The ongoing negotiations reflect a shared commitment to enhancing trade and investment opportunities between the two nations.