India, Canada Launch 5th CEPA Round to Boost Energy and Mineral Ties
India and Canada launch the fifth round of CEPA talks in Ottawa, targeting $70 billion in bilateral trade through energy and critical mineral cooperation.
In a significant move to strengthen economic corridors, India and Canada are set to commence the fifth round of negotiations for the Comprehensive Economic Partnership Agreement (CEPA) in Ottawa today. The talks aim to expand bilateral cooperation across high-growth sectors, including energy, critical minerals, and aerospace.
Canadian International Trade Minister Maninder Sidhu announced the commencement of these talks, noting that they build upon the momentum generated during his recent visit to Mumbai and high-level discussions with India's Union Commerce Minister Piyush Goyal during the G20 Trade Ministers Meeting.
Targeting $70 Billion in Bilateral Trade
The strategic goal for both nations is ambitious. During the G20 proceedings, Minister Sidhu highlighted that India and Canada are working toward a massive increase in bilateral trade, aiming to climb from the current levels to USD 70 billion over the next five years.
This negotiation round is a critical step in a timeline that sees both governments committed to concluding the CEPA negotiations by the end of 2026. The agreement is expected to open significant doors for businesses and workers in both nations, particularly as India continues its trajectory as one of the world's largest and fastest-growing economies.
Energy Security and the LNG Factor
A major pillar of the upcoming discussions is India's surging energy demand. With the Indian economy growing at an annual rate of 7 per cent, its energy requirements are projected to soar by 70 per cent by the year 2035.
Canada is positioning itself as a primary solution to this demand. Minister Sidhu emphasized Canada's readiness to support India's energy transition, pointing specifically to the LNG Canada Phase 2 project. This USD 33 billion investment is set to create the second-largest facility of its kind globally, positioning Canada as a top-five LNG exporter within the next five years.
Critical Minerals and Aerospace Cooperation
Beyond the energy sector, the negotiations are expected to dive deep into several other strategic industries:
- Critical Minerals: Both nations are looking at supply chain diversification to ensure a steady flow of essential minerals required for modern technology and green energy.
- Aerospace: Expanding industrial cooperation and research within the aviation sector.
- Investment and Research: Strengthening the collaborative framework for long-term economic stability.
Minister Sidhu expressed Canada's intent to be "the reliable partner India needs," particularly as both countries seek to diversify their supply chains and foster resilience in critical sectors.
Current Trade Landscape
While the targets are set high, the current trade figures provide a foundation for growth. According to the Commerce Ministry, bilateral trade between India and Canada stood at approximately USD 8 billion in FY 2025-26. During this period, India's exports to Canada were valued at USD 4.67 billion, while imports from Canada amounted to USD 3.28 billion.