India-Peru FTA unlikely soon; Canada pact may close in 6 months: Goyal

Commerce and Industry Minister Piyush Goyal on Saturday said a proposed free trade agreement (FTA) between India and Peru is unlikely to be concluded in the near term, citing unresolved concerns over market access for certain products.

 

"There are certain concerns. There are many products where we cannot offer them market access. I do not see Peru FTA happening very soon," Goyal told reporters on the sidelines of the 17th Toy Biz International B2B Exhibition in New Delhi.

 

Negotiations for the India-Peru FTA began in 2017. The proposed agreement has gained significance as bilateral trade between the two countries rose 67.5 per cent to $10 billion in 2025-26 from $5.98 billion a year earlier.

 

 

India exported goods worth $1.4 billion to Peru during the last financial year, while imports stood at $8.87 billion, resulting in a trade deficit of $7.47 billion.

 

Gold remains the dominant item in India's imports from Peru. According to trade data, gold imports from the South American country increased 78.45 per cent to $7.9 billion in 2025-26 from $4.43 billion in the previous year. Industry experts have said that discussions on tariff concessions for gold could emerge as one of the most challenging aspects of the proposed agreement.

 

Key Indian exports to Peru include motor vehicles, cotton yarn and pharmaceuticals, while imports largely comprise gold, copper ores and concentrates.

 

On trade talks with Canada, Goyal said negotiations were progressing and that India hopes to conclude the proposed Comprehensive Economic Partnership Agreement (CEPA) within the next six months.

 

"The Canada FTA is progressing well ..our team is going on Monday for next round of negotiations. We are trying that we should conclude it in the next six months or so," he said.

 

The next round of negotiations will take place in Canada. India and Canada concluded the second round of CEPA talks on May 8.

 

The agreement is part of efforts by both countries to increase bilateral trade to $50 billion by 2030. Merchandise trade between the two nations stood at $7.95 billion in 2025-26, down 8.22 per cent from $8.7 billion in the previous year.

 

India's exports to Canada were valued at $4.67 billion, while imports stood at $3.28 billion. Major Indian exports include pharmaceuticals, iron and steel products, seafood, garments, electronics and chemicals. Key imports from Canada include pulses, coal, fertilisers, crude petroleum, pearls and semi-precious stones.

 

Goyal also said he would travel to Brussels on July 13 along with External Affairs Minister S Jaishankar and Electronics and IT Minister Ashwini Vaishnaw for the India-European Union Trade and Technology Council (TTC) meeting.

 

"Our effort is that it becomes a supplement to the FTA which we have finalized and will help us to smoothen the edges and make it easier to implement the FTA going forward," he said.

 

India and the European Union have already announced the conclusion of negotiations for their trade agreement and are currently carrying out legal scrutiny of the text. The pact is expected to be signed by the end of this year and could come into force in 2027.

 

Separately, addressing the Toy Biz International B2B Exhibition, Goyal urged manufacturers to tap opportunities arising from India's recent trade agreements and overseas market access initiatives. He said toy exports have increased by 239 per cent over the last four years and called on the industry to aim for significantly higher growth in the coming years.

 

The minister also said the government would establish modern testing facilities across toy manufacturing clusters through the Bureau of Indian Standards, National Test House and other laboratories to help manufacturers meet quality requirements in domestic and international markets.

 

Referring to recently concluded trade agreements, Goyal said Indian businesses should make greater use of markets opened through FTAs. He said the India-UK FTA is expected to become operational on July 15, while duty-free access opportunities are expanding across several developed markets. 

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  (With inputs from agencies)