- India and Canada aim to finalize a trade deal by the end of this year.
- Canada's Minister of International Trade welcomed India's largest business delegation.
- A CAD 2.6 billion uranium deal was signed to supply nuclear fuel to India.
India and Canada are looking at concluding negotiations for a free trade agreement by the end of this year, Commerce and Industry Minister Piyush Goyal has said. Goyal is in Canada for a three-day official visit, starting May 25. He is leading a delegation of industry leaders from over 100 companies. Goyal also called on Canada's Prime Minister Mark Carney. Both sides expressed optimism about the early conclusion of the trade pact negotiations. The two countries are negotiating a Comprehensive Economic Partnership Agreement (CEPA). Two rounds of negotiations have been completed.
"Our prime ministers have tasked us not only with completing the free trade agreement with a comprehensive outlook before the end of this year or earlier -- but also tripling our trade from a current USD 17 billion level to USD 50 billion by 2030," Goyal said, while jointly addressing the media in Ottawa with Canada's Trade Minister Maninder Sidhu on Monday, May 25.
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In a social media post, Carney said, "We're negotiating a free trade deal with India. This will be a game changer for Canadian workers and businesses - unlocking a massive new market. We're working fast - I met Minister @PiyushGoyal to review our progress so far and explore the opportunities ahead for both our countries in energy, agri-food, tech, and education."
The third round of negotiations is going on in Ottawa from May 25 to 29. During their bilateral meeting, Goyal and Sidhu reviewed the outcomes of negotiations and identified future opportunities to expand trade and investment flows. Both sides reaffirmed their resolve to conclude a balanced and mutually beneficial agreement by the end of 2026, the commerce ministry said in a statement.
In such pacts, two trading partners significantly reduce and eliminate import duties on the maximum number of goods traded between them. Besides, they also ease norms to promote trade in services and boost investments. Goyal also met Canada's Minister of Agriculture and Agri-Food Heath MacDonald and discussed strengthening bilateral cooperation in agriculture, with a focus on food security, sustainability, and agri-technology. In Toronto (May 26-27), the Indian minister will participate in industry roundtables.
During the opening joint statement, Canada's Minister of Commerce and Industry Sidhu warmly welcomed Minister Piyush Goyal, saying, “There's a lot of excitement to do more with India in terms of our economic partnership.” He said he is hearing from the business communities across the country, from Chambers of Commerce, and from their stakeholders.
Sidhu added that Minister Goyal's visit is a very timely visit with the Comprehensive Economic Partnership Agreement (CEPA) and CAD 2.6 billion uranium deal in March. “This is very important, it's going to be building on the meetings that we're having over the next 48 hours, we're going to be sitting down with our chief negotiators, two rounds have been done, we're going to be working together, a lot of WhatsApp diplomacy between us to conclude a deal this year,” Maninder Sidhu noted.
Commerce Minister Piyush Goyal said during the joint media address with Sidhu, “We had the visit of (Canada's) Prime Minister Mark Carney in India just a couple of months ago, and it was the first visit by a Canadian Prime Minister to India in eight years, but I think it completely changed the way Canada and India looked at each other.”
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In India, Carney met with Indian Prime Minister Narendra Modi and the two sides signed a series of agreements -- including a deal worth 2.6 billion Canadian dollars (USD 1.9 billion) to supply about 22 million pounds of uranium to India for nuclear energy generation. A Canadian delegation was in New Delhi for trade talks earlier this month and another Indian delegation is planning to return to Canada to continue discussions later this year.
The Indian business delegation represents different sectors, including energy, mining, automotive goods, pharmaceuticals, telecommunications, artificial intelligence, leather, and textiles. Key exports from India to Canada include pharmaceuticals, iron and steel, seafood, cotton garments, electronic goods and chemicals, among others. Imports include pulses, pearls and semi-precious stones, coal, fertiliser, paper and petroleum crude.
India's main services sector exports include telecommunications, computer and information services, and other business services. Canada is also home to over 4,25,000 Indian students and a strong Indian community. Joint Secretary in the Department of Commerce, Brij Mohan Mishra, is the chief negotiator from the Indian side. Bruce Christie is Canada's chief negotiator.
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