India Canada CEPA Talks Focus on Energy and Critical Minerals

India and Canada are kicking off the fifth round of talks for a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa. Canadian International Trade Minister Maninder Sidhu emphasized that energy, critical minerals, and aerospace are key areas for strengthening economic ties. The negotiations aim to build on recent discussions, including Sidhu's meeting with India's Union Commerce Minister Piyush Goyal at the G20 Trade Ministers Meeting.

Sidhu highlighted Canada's potential role in meeting India's growing energy needs, noting that India's economy is expanding at 7% annually. By 2035, India's energy demands are expected to rise by 70%. Canada is positioning itself as a major player, with the USD 33 billion investment in LNG Canada Phase 2 set to make it a top-five LNG exporter within five years.

Beyond energy, critical minerals and aerospace are also focal points. Sidhu stated that Canada aims to be 'the reliable partner India needs' as both countries work toward a trade agreement. The talks also cover supply chain diversification, particularly in critical minerals, to enhance cooperation across multiple sectors.

The two governments have set a deadline to conclude CEPA negotiations by the end of 2026. Bilateral trade between India and Canada currently stands at around USD 8 billion for FY 2025-26, with India exporting USD 4.67 billion worth of goods and importing USD 3.28 billion.