India, Canada open crucial trade talks

India and Canada will begin the fifth round of CEPA negotiations in Ottawa from October 5-9, aiming to conclude a trade deal by year-end. The talks seek to expand bilateral trade, strengthen cooperation in energy, critical minerals, aerospace and AI, and support Canada’s trade diversification

Ottawa: India and Canada will begin a crucial fifth round of negotiations for a comprehensive trade agreement here Monday, accelerating efforts to conclude a deal before the end of the year as the two countries rapidly expand an economic relationship that only recently emerged from a prolonged diplomatic chill.

The negotiations for the Comprehensive Economic Partnership Agreement, or CEPA, will run from October 5 to 9, according to Global Affairs Canada. The new round follows talks between Commerce and Industry Minister Piyush Goyal and Canadian International Trade Minister Maninder Sidhu on the sidelines of the G20 Trade Ministers’ Meeting in Milwaukee last week.

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The two ministers reviewed progress in the negotiations and discussed the upcoming Ottawa round. Sidhu emphasised the importance of working towards a mutually beneficial agreement by the end of 2026, Global Affairs Canada said in a readout of their meeting.

The talks come at a significant moment in the economic reset between India and Canada. The two governments are seeking to substantially expand trade while identifying energy, critical minerals, aerospace and artificial intelligence among areas offering potential for deeper cooperation.

Canada says two-way goods and services trade with India reached $30.4 billion in 2025 and has set a goal of doubling two-way trade to $70 billion annually by 2030. Four rounds of CEPA negotiations have already been completed, with the previous round concluding in New Delhi on Sept. 18.

Canadian officials have said negotiators are working to maintain momentum and narrow outstanding gaps with the shared objective of concluding negotiations before the end of this year. The fifth round will be followed almost immediately by another major Canadian commercial push into India.

Sidhu is scheduled to lead a Team Canada Trade Mission to India from October 12 to 17.

The mission is expected to bring close to 300 Canadian delegates from businesses across key sectors. Sidhu and Goyal discussed the mission during their Milwaukee meeting, with Canada saying it was intended to create new opportunities and expand commercial ties between businesses in the two countries.

The Canadian minister has also presented his country as a potential long-term supplier to meet India’s expanding requirements for energy, critical minerals and other commodities.

“My discussions with Minister Goyal this week are driving real progress toward an agreement that will double our two-way trade to $70 billion by 2030,” Sidhu said after meeting Goyal in Mumbai last month. “India’s rapid growth and Canada’s advantage in energy, critical minerals, aerospace, AI and more mean enormous potential for our businesses and workers,” he said.

Canada is simultaneously trying to diversify its international commerce and reduce its overwhelming dependence on the United States. Ottawa says it wants to double exports to markets outside the United States over the next decade, making the rapidly growing Indian economy an increasingly important part of its trade diversification strategy.

The economic numbers underscore the scope of the relationship. Two-way merchandise trade reached $13.6 billion in 2025, according to Canadian government figures. Canadian exports to India were $3.9 billion, led by vegetables, mineral fuels and oils and wood pulp.

Merchandise imports from India reached $9.7 billion, with precious stones and metals, machinery and pharmaceuticals among the principal categories. Services form an even larger component of the relationship. Canadian service exports were valued at $15.2 billion in 2025, with education-related travel accounting for the largest share.