Piyush Goyal's Canada visit to speed up talks on free trade pact
New Delhi, May 24
Indian Commerce and Industry Minister Piyush Goyal's three-day visit to Canada, starting on Sunday, is expected to accelerate negotiations for the proposed Comprehensive Economic Partnership Agreement between the two countries and rebuild closer economic relations.
Civil nuclear cooperation has also emerged as a key pillar of the bilateral energy partnership.
The visit assumes significance at a time when India and Canada, under the Mark Carney government, are actively working towards an ambitious target to enhance bilateral trade to $50 billion by 2030.
India and Canada share strong complementarities in sectors such as agriculture, clean energy, critical minerals, food processing, education, and advanced manufacturing, which can significantly enhance bilateral trade and investments.
A free-trade agreement with Canada could help India diversify import sources for strategic products such as energy products ($341.36 million) and fertilisers ($263.17 million), whose supplies are currently under disruption amid the West Asia conflict.
India's top imports from Canada in FY26 were yellow peas ($311.24 million) and lentils ($306.56 million).
On the other hand, Indian industries anticipate export opportunities in sectors such as pharmaceutical products ($548.27 million), gem & jewellery ($380.46 million), iron and steel items ($292.47 million), organic chemicals ($234.41 million), and electrical equipment ($226.01 million).
The proposed trade agreement will open new opportunities for Indian exporters, particularly MSMEs, by improving market access, facilitating smoother trade procedures, and encouraging greater collaboration in technology and innovation-driven sectors. Amid evolving global trade dynamics and supply chain realignments, stronger India-Canada trade relations can contribute positively to economic resilience and growth for both countries.
The renewed engagement between India and Canada comes at a crucial juncture when global markets are witnessing uncertainties arising from geopolitical conflicts, tariff-related disruptions, and changing international trade alignments. Enhanced bilateral cooperation is expected to support diversification of trade partnerships and strengthen supply chain security.
India and Canada held detailed discussions across a wide range of chapters, including Trade in Goods, Trade in Services, Intellectual Property, Rules of Origin, Sanitary and Phytosanitary Measures, and Technical Barriers to Trade as part of the second round of negotiations for the proposed CEPA earlier this month.
Both sides agreed to continue negotiations in a constructive and cooperative spirit and looked forward to the next round of discussions, scheduled to be held in July in Ottawa, with intersessional engagements to continue in the interim, the statement observed.
— IANS
Reader Comments
Great move! But I hope this time talks don't get stuck on visa issues or political posturing. Both countries have strong synergies in pharma and agri-tech. Let's get this $50 billion target done! 🇮🇳🇨🇦
Honestly, this is long overdue. India and Canada have been talking about a trade pact for years. With the global supply chain chaos and West Asia tensions, now's the time to fast-track it. Hope our government also pushes for easier student visa access for Indians.
As someone who studied in Canada, I can say Indian pharma and tech products are highly respected there. A free trade deal will be a win-win, especially for small exporters. But let's be careful — we must protect our dairy farmers from cheap imports.
Finally! This should have been done years ago. With the US imposing tariffs and China becoming unreliable, Canada is a natural partner. Hope our negotiators don't give away too much — especially on intellectual property. Indian generics industry needs protection.
Interesting timing with the new Carney government in Canada. They seem more open to trade. But I'm skeptical — Canada's dairy lobby is strong and India's farm sector is sensitive. Still, $50 billion is a realistic target if both sides compromise. 🤔
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