India and Canada are advancing negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with a focus on enhancing energy cooperation. The potential agreement looks to create a two-way energy supply chain, allowing India to import Canadian crude oil and natural gas while exporting refined petroleum products back to Canada.
The sixth round of negotiations is set to take place in New Delhi early next month, as Canadian trade negotiators visit to discuss the terms further. Both nations are eager to finalize the agreement before Indian Prime Minister Narendra Modi’s visit to Canada scheduled for December 11-12.
This partnership could prove mutually beneficial due to the complementary nature of each country’s energy needs. Canada is a prominent energy producer, and India is a major consumer of crude oil and natural gas, with a robust refining industry. Certain Canadian refineries have limitations processing heavy crude from Alberta’s oil sands, whereas some Indian refineries can handle a broader spectrum of crude grades, enabling India to supply refined fuels to Canada effectively.
Potential collaboration areas include crude oil, liquefied petroleum gas (LPG), liquefied natural gas (LNG), potash, uranium, and refined petroleum products. The ongoing dialogue marks a significant step in strengthening bilateral relations, which have been bolstered by high-level visits and trade discussions involving officials and business representatives from both countries.
Initiated in March 2026, the CEPA negotiations have already seen five rounds of talks completed by October. The agreement aims to boost bilateral trade to C$70 billion by 2030, building on the C$30.4 billion trade in goods and services recorded in 2025. This expansion highlights the potential for further economic cooperation between India and Canada.