India, Canada push to seal trade pact in year end
India and Canada are looking at concluding negotiations for a free trade agreement by the end of this year, Commerce and Industry Minister Piyush Goyal has said.
Goyal is in Canada for a three-day official visit, starting May 25. He is leading a delegation of industry leaders from over 100 companies.
“Our prime ministers have tasked us not only with completing the free trade agreement with a comprehensive outlook before the end of this year or earlier — but also tripling our trade from a current $17 billion level to $50 billion by 2030,” Goyal said, while jointly addressing the media in Ottawa with Canada’s Trade Minister Maninder Sidhu on Monday.
Goyal also called on Canada’s Prime Minister Mark Carney. Both sides expressed optimism about the early conclusion of the trade pact negotiations.
In a social media post, Carney said, “We’re negotiating a free trade deal with India. This will be a game changer for Canadian workers and businesses — unlocking a massive new market. We’re working fast — I met Minister @PiyushGoyal to review our progress so far and explore the opportunities ahead for both our countries in energy, agri-food, tech, and education.”
The two countries are negotiating a Comprehensive Economic Partnership Agreement (CEPA). Two rounds of negotiations have been completed.
The third round is going on in Ottawa from May 25 to 29.
During their bilateral meeting, Goyal and Sidhu reviewed the outcomes of negotiations and identified future opportunities to expand trade and investment flows. Both sides reaffirmed their resolve to conclude a balanced and mutually beneficial agreement by the end of 2026, the commerce ministry said in a statement.
In such pacts, two trading partners significantly reduce and eliminate import duties on the maximum number of goods traded between them. Besides, they also ease norms to promote trade in services and boost investments.
Goyal also met Canada’s Minister of Agriculture and Agri-Food Heath MacDonald and discussed strengthening bilateral cooperation in agriculture, with a focus on food security, sustainability, and agri-technology.
In Toronto (May 26-27), the Indian minister will participate in industry roundtables.
The Indian business delegation represents different sectors, including energy, mining, automotive goods, pharmaceuticals, telecommunications, artificial intelligence, leather, and textiles.
Key exports from India to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals, among others.
Imports include pulses, pearls and semi-precious stones, coal, fertiliser, paper and petroleum crude.
India’s main services sector exports include telecommunications, computer and information services, and other business services. Canada is also home to over 4,25,000 Indian students and a strong Indian community.
Joint Secretary in the Department of Commerce, Brij Mohan Mishra, is the chief negotiator from the Indian side. Bruce Christie is Canada’s chief negotiator.
