Fifth round of CEPA negotiations set to begin in Ottawa as both sides push to conclude the deal by end of 2026
Canada and India are aiming to more than double their bilateral trade from around $30 billion to nearly $70 billion within the next five years, Canadian International Trade Minister Maninder Sidhu said Thursday, as the two countries push toward concluding a long-pending free trade agreement.
Speaking on the sidelines of the 2026 G20 Trade Ministers’ Meeting in Milwaukee, Sidhu said the fifth round of negotiations on the Comprehensive Economic Partnership Agreement (CEPA) would begin in Ottawa the following Monday, building on the fourth round held in Mumbai last week. “The vision that the leaders have set out for us is to scale trade from USD 30 billion to USD 70 billion within the next five years,” Sidhu said, adding that achieving the target would require greater trade facilitation alongside deeper investment, research and collaboration.
Energy and critical minerals at the centre
Sidhu said energy and critical minerals form the cornerstone of the strategic economic alignment between the two countries. “India’s economy is growing at 7% year-over-year, and the country will require 70% more energy by 2035. We have that energy in Canada,” he said. He also pointed to opportunities in critical minerals to support India’s supply-chain diversification, particularly for its growing automotive, electric vehicle and battery sectors, noting that Canada is the only country in the Western Hemisphere with every element needed to build an EV battery supply chain. Aerospace was flagged as a further area of potential cooperation.
Canada’s existing footprint in India
Highlighting Canada’s current economic presence in the country, Sidhu said Canada is already the largest collective investor in India, with holdings exceeding $100 billion, with Canadian companies involved in infrastructure projects including airports and highways. Two-way goods and services trade between the countries stood at $30.4 billion in 2025, according to the Canadian government, while India’s Commerce Ministry put bilateral trade at around $8 billion in FY 2025-26, with India exporting goods worth $4.67 billion and importing $3.28 billion.
Where the talks stand
Union Commerce Minister Piyush Goyal has said India and Canada have agreed to fast-track CEPA negotiations, with both sides working to conclude the agreement by the end of 2026. Talks resumed in earnest after Canadian Prime Minister Mark Carney and Prime Minister Narendra Modi held discussions on deepening the relationship, with Goyal and Sidhu signing the formal Terms of Reference for the renewed CEPA process in March 2026 during Carney’s visit to India. Sidhu said he remained confident the two sides could reach a conclusion in the coming months, describing the Indian and Canadian economies as complementary rather than competing.
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