India and Canada on Monday launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA), a move that could have implications for trade in energy-linked commodities between the two countries.
While the proposed agreement covers trade in goods and services, coal, petroleum crude and fertilisers form part of India’s imports from Canada. According to official data, bilateral trade stood at $8.66 billion in FY 2024–25, with India importing $4.44 billion worth of goods, including coal, fertilisers and crude oil.
Canada is a supplier of coking coal used in steel production, as well as fertiliser inputs such as potash. Any easing of tariffs or trade barriers under CEPA could facilitate more stable access to these resources, which are critical to India’s industrial and agricultural sectors.
The launch of negotiations comes amid ongoing efforts by India to diversify its sources of key commodities and reduce exposure to supply disruptions.
Prime Minister Narendra Modi said the two countries have set a target of increasing bilateral trade to $50 billion by 2030. The negotiations will cover trade in goods, services and other mutually agreed policy areas, with the Terms of Reference signed in New Delhi on Monday.
