Canada Moves to Revive Free Trade Agreement Negotiations with India
In a significant development for international trade relations, Canada has formally communicated its desire to accelerate the launch of formal negotiations for a comprehensive free trade agreement (FTA) with India. This move signals a deliberate reset in bilateral trade engagement between the two nations, following a pause in discussions that occurred in 2023.
High-Level Diplomatic Invitation Extended
Canada’s Minister of Export Promotion, International Trade and Economic Development, Maninder Sidhu, has extended a formal invitation to India's Commerce and Industry Minister, Piyush Goyal, to visit Canada during the third week of October. This high-level diplomatic engagement is seen as a crucial step as both sides work to solidify the next phases of their renewed trade partnership.
The official statement, reported by PTI on Wednesday, underscores a mutual agreement to begin negotiations afresh. Officials from both countries have acknowledged that the global trade landscape has undergone substantial transformation over the past two years, necessitating a renewed and contemporary approach to their bilateral economic relationship.
Finalizing the Framework for Negotiations
Commerce Secretary Rajesh Agrawal indicated earlier this month that India and Canada are actively in the process of finalizing the terms of reference (ToR) that will formally initiate the negotiation process. This critical document will establish the precise scope, objectives, and procedural modalities for the proposed free trade agreement, laying the groundwork for detailed discussions.
Chief Negotiators Appointed by Both Nations
In preparation for the upcoming talks, both governments have designated their lead negotiators:
- For India: Brij Mohan Mishra, Joint Secretary in the Department of Commerce, will spearhead the negotiation team.
- For Canada: Bruce Christie has been appointed as the chief negotiator, representing Canadian interests.
The appointment of these seasoned officials highlights the seriousness with which both nations are approaching the potential agreement.
Current Bilateral Trade Dynamics
Recent trade data reveals a nuanced picture of the economic relationship between India and Canada:
- India's Exports to Canada: Showed robust growth, increasing by 9.8 per cent to reach $4.22 billion in the 2024–25 fiscal year, up from $3.84 billion in the previous year.
- India's Imports from Canada: Experienced a slight decline of 2.33 per cent, totaling $4.44 billion in the last fiscal year, compared to $4.55 billion a year earlier.
This trade data underscores the existing economic ties and the potential for further expansion through a structured free trade agreement. The renewed push for negotiations reflects a strategic effort to harness this potential and adapt to the evolving demands of global commerce.
