Union Commerce and Industry Minister Piyush Goyal is set to visit Canada next week to push forward free trade agreement (FTA) talks and boost investment flows between the two nations. The visit, scheduled from November 20-24, aims to deepen economic cooperation and address pending trade issues.
Key Objectives of the Visit
During his stay, Goyal will hold meetings with Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng, as well as other senior officials. The discussions will focus on accelerating negotiations for a Comprehensive Economic Partnership Agreement (CEPA) and exploring new avenues for bilateral investments. India and Canada had resumed FTA talks in 2022 after a gap of several years, with the aim of enhancing trade in goods, services, and investments.
Trade and Investment Potential
Bilateral trade between India and Canada stood at approximately USD 8.16 billion in 2022-23, with potential for significant growth. Key sectors for cooperation include agriculture, pharmaceuticals, information technology, and renewable energy. Canada is also a major source of foreign direct investment (FDI) for India, with cumulative FDI inflows of over USD 3.6 billion between 2000 and 2023.
The minister's visit is expected to provide a fresh impetus to the negotiations, which have seen progress in areas such as rules of origin, customs procedures, and sanitary and phytosanitary measures. Both sides are keen to resolve outstanding issues related to market access for agricultural products and services.
Strengthening Bilateral Ties
Goyal's visit is part of ongoing efforts to strengthen India-Canada relations, which have faced challenges in recent years. The two countries share common values of democracy and pluralism, and there is mutual interest in expanding economic engagement. The visit is also expected to explore partnerships in critical minerals, space, and education.
India is Canada's 10th largest trading partner, while Canada is India's 17th largest. The proposed FTA is expected to boost bilateral trade to USD 15 billion in the next five years. The minister will also interact with Canadian business leaders to showcase investment opportunities in India, particularly in manufacturing, infrastructure, and digital economy.
Outlook
The visit comes ahead of the next round of FTA negotiations, scheduled for early 2024. Both sides are optimistic about reaching a mutually beneficial agreement that will enhance economic ties and create new opportunities for businesses and consumers in both countries.
