India and Canada set to relaunch free trade agreement talks

India and Canada are set to resume negotiations to finalise a trade pact to strengthen economic ties between both countries.

Towards this, an interim trade deal will be finalised, which will be followed by a full-fledged free trade agreement (FTA) or a comprehensive economic partnership agreement (CEPA). India and Canada have been negotiating CEPA since 2010, with the latest round of negotiations held in August, 2017.
 

An interim or an early progress trade agreement (EPTA) will include discussions on goods, services, rules of origin, sanitary, and phytosanitary measures, technical barriers to trade, and dispute settlement.
 

“Canada and India agreed to promote and protect bilateral investment, including through the intensification of negotiations toward a bilateral investment Agreement, while considering options to achieve this goal alongside CEPA,” a joint statement released by both countries said on Friday.
 

The announcement comes in the backdrop of the fifth ministerial dialogue on trade and investment (MDTI) that was chaired by Commerce and Industry Minister Piyush Goyal. Mary Ng, Canadian minister of small business, export promotion and international trade, is the co-chair of MDTI.
 

The two nations have decided to strengthen trade and commercial ties through enhanced partnerships and cooperation in identified areas such as agro-products, chemicals, footwear, textiles, automobiles, energy, electronics, minerals and metals, urban development, information technology, and tourism. They will also enhance cooperation in sectors, such as pharmaceuticals and critical and rare earth minerals as well as in areas like tourism, urban infrastructure, renewable energy and mining.
 

Both countries agreed to undertake ‘intensified’ work with respect to the recognition of Canada’s systems approach to pest risk management in pulses and market access for Indian agriculture goods such as sweet corn, baby corn and banana, among others. Canada expressed interest in market access for cherries and agreed to expedite facilitating Indian organic export products in Canada.
 

“The ministers highlighted the existing trade complementarities between India and Canada and emphasised that the trade agreement would help in expanding bilateral trade in goods and services through unlocking the potential across sectors,” an official statement said.
 

“They also noted the role of strong people-to-people ties between the two countries, including movement of professionals and skilled workers, students, and business travellers, in strengthening the bilateral economic partnership,” the statement said.

Total bilateral trade between the two countries, including goods and services, crossed $11 billion.
 

During April 2021-January 2022, Indian exports to Canada increased to $3 billion, up almost by a fourth as compared to a year ago. Major Indian exports to Canada include drugs and pharmaceutical products, iron & steel products, marine products, cotton fabrics & readymade garments and chemicals, while key Canadian exports to India comprise pulses, fertilisers, coal, and crude petroleum, etc.