India, Canada to start discussions next week to resume talks for trade pact

India’s Commerce and Industry Minister Piyush Goyal said on Friday (November 28) that India and Canada will restart discussions next week to resume negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a significant reset after talks were suspended last year.

Goyal reiterated that both countries intend to deepen economic ties and had previously expressed an ambition to double trade by 2030.

India and Canada had paused CEPA discussions in September 2023 amid diplomatic tensions. Both sides agreed to relaunch negotiations, supported by a joint ministerial statement outlining a goal to raise bilateral trade to around $50 billion by 2030.

Bilateral trade in 2024 between India and Canada was $22.54 billion.

India's commerce ministry has identified scope for collaboration with Canada in critical minerals, mineral processing technologies, clean energy, nuclear energy and supply-chain diversification.

Earlier this week, the minister had said that both countries should identify focused areas of collaboration, including critical minerals, clean energy, aerospace, defence and manufacturing under the 'Make in India' programme. He said that Canadian innovation combined with Indian capabilities can create significant opportunities for both nations.

Read more: India expanding global trade reach with 50-country FTA pipeline, says Piyush Goyal

Goyal’s latest announcement on kickstarting trade negotiations with Canada came during his address at FICCI’s 98th AGM and Annual Convention in New Delhi, where he noted that India is simultaneously in trade negotiations with 14 customs territories representing nearly 50 countries.

He said India is in active talks with the European Union, Oman, New Zealand, Chile, Peru and the Gulf Cooperation Council (GCC), while Bahrain and Qatar have separately expressed interest in pursuing FTAs. India is also preparing to begin discussions with Israel and is engaged with the Russia-led Eurasian Economic Union (EAEU), the Brazil-led MERCOSUR bloc and the South African Customs Union (SACU). He added that India is reviewing its FTAs with ASEAN and South Korea to restore balance in those agreements.

The Minister underlined that global trade is increasingly being weaponised, stressing the importance of trusted partners and national self-reliance. He said countries that failed to build self-reliance in national security are facing challenges today.

Goyal added that India could have concluded FTAs with the UK and the EFTA bloc 25 years ago had the country adopted a more forward-looking approach rather than a protectionist one.

He also emphasised the need to leverage India’s youthful, internet-connected population and noted that many businesses continue to report a shortage of suitable candidates for employment.