India, Canada Agree to Resume FTA Talks: Piyush Goyal
India and Canada have decided to restart talks on a Free Trade Agreement (FTA) to boost bilateral trade to $50 billion by 2030, as stated by Minister of Commerce and Industry Piyush Goyal. Goyal emphasized that an FTA or CEPA involves numerous strategic components and serves as a representation of the mutual trust between the two nations.
"We have agreed to begin negotiations on a high-ambition CEPA and double the trade between the two nations by 2030," he said, adding the two countries are natural allies and do not compete with each other.
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He mentioned that the agreement would instill trust in investors and businesses from both parties. Goyal stated that the combined strengths of India and Canada have the potential to significantly benefit businesses and investors.
"There is a lot that we can learn from Canada and a lot we can offer Canada. There is a lot of potential on critical minerals, critical minerals processing technologies. There is a good possibility on nuclear energy - particularly with our engagement with Canada on Uranium supplies," he said, adding, "we can diversify our supply chains on both sides".
Negotiations for a Free Trade Agreement (FTA) between India and Canada were suspended in 2023. Relations between the two countries deteriorated after Canadian Prime Minister Justin Trudeau suggested a possible Indian involvement in the murder of Hardeep Singh Nijjar in 2023. India rejected Trudeau's claims as unfounded.
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In March 2022, both nations restarted talks for a temporary deal, known as the Early Progress Trade Agreement (EPTA).
So far, more than six discussions have taken place regarding the trade agreement. In a typical trade agreement, two countries usually decrease or remove tariffs on a wide range of products exchanged between them.
They also relax regulations to boost the trade of services and encourage investments. In the fiscal year 2024-25, India's exports to Canada increased by 9.8 percent, totaling $4.22 billion, compared to $3.84 billion in the previous year.
On the other hand, imports from Canada decreased by 2.33 percent to $4.44 billion in 2024-25, down from $4.55 billion in 2023-24.
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The improved relationship between the two nations is a result of discussions between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney during the G7 summit in Canada's Kananaskis in June.
In 2023, the bilateral trade in goods and services between India and Canada reached a total of $18.38 billion.Canada is home to approximately 2.9 million people of Indian descent, as well as more than 427,000 Indian students.