India, Canada initiate important fifth round of trade negotiations

India and Canada are set to engage in crucial negotiations for their Comprehensive Economic Partnership Agreement (CEPA) starting today, October 5, and running through October 9. This fifth round of talks is aimed at finalizing a significant trade deal as the two nations work to strengthen their economic relationship, which has recently improved after overcoming a period of diplomatic tension.

Global Affairs Canada announced that the latest discussions follow a meeting last week between India's Commerce and Industry Minister Piyush Goyal and Canadian International Trade Minister Maninder Sidhu at the G20 Trade Ministers’ Meeting in Milwaukee. During this meeting, both ministers evaluated the progress made so far and outlined goals for the upcoming round in Ottawa.

Trade talks come at a pivotal time for both countries, as they look to significantly boost trade ties by focusing on sectors such as energy, critical minerals, aerospace, and artificial intelligence. There is a shared objective to conclude the negotiations by the end of this year as Canada aims for its two-way trade with India to reach $70 billion annually by 2030, a doubling from the current figures.

As of 2025, the total value of goods and services traded between Canada and India reached $30.4 billion, with merchandise trade alone amounting to $13.6 billion. These figures underline the growing importance of the Indian market for Canada, which is also seeking to diversify its trade relations to lessen its economic reliance on the United States.

During this ongoing round, Canadian officials are focused on maintaining the momentum established in previous negotiations, which have included four completed rounds, the most recent of which took place in New Delhi on September 18. According to Canadian representatives, narrowing the gaps and resolving outstanding issues is a priority, reflecting a commitment to achieving mutual benefits.

In a strategic follow-up to these negotiations, Sidhu plans to lead a Team Canada Trade Mission to India from October 12 to 17. This mission is expected to bring nearly 300 delegates representing various Canadian businesses across key sectors, further illustrating Canada’s intent to foster new commercial opportunities on Indian soil. Discussions on this trade mission were part of the agenda during Sidhu and Goyal's meeting earlier this month.

Sidhu emphasized the potential of Canada to become a long-term supplier of essential commodities to India, addressing the latter's growing demands in various sectors. After a previous dialogue with Goyal in Mumbai, he remarked, "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."

The increasing pace of these trade talks and missions is indicative of Canada's attempt to expand its international commerce and diversify away from its historical reliance on the U.S. market. Ottawa aims to double its exports to non-U.S. markets over the next decade, positioning India as a crucial partner in this strategy.

As the negotiations unfold, the economic data highlights the robust nature of the relationship. Canadian exports to India include $3.9 billion worth of goods, primarily in vegetables, mineral fuels, and wood pulp, while imports from India totaled $9.7 billion, mainly consisting of precious stones, machinery, and pharmaceuticals. Furthermore, Canadian service exports were valued at $15.2 billion in 2025, with education-related travel being a key contributor. This report indicates that the momentum of trade talks between India and Canada is critical to expanding their economic future.

Source

Original IANS report

Edited with AI assistance.

Featured image: AI-generated representative image.