India, Canada to start talks for free trade agreement
What's the story
India and Canada are gearing up to start negotiations for a Comprehensive Economic Partnership Agreement (CEPA). The announcement comes after Commerce and Industry Minister Piyush Goyal met his Canadian counterpart Maninder Sidhu on Wednesday. The main goal of the proposed CEPA is to boost bilateral trade between the two countries to $50 billion by 2030.
Delegation details
Goyal to lead trade delegation to Canada
Goyal has announced his decision to head a high-level trade and investment delegation to Canada next year. The move comes as part of the preparations for the CEPA negotiations. In 2023, Canada had halted talks on the agreement after bilateral relations soured over allegations made by then Prime Minister Justin Trudeau about India's possible involvement in Hardeep Singh Nijjar's murder.
Agreement significance
CEPA: A step toward enhanced trade relations
The CEPA is a type of free trade agreement (FTA) where two countries either cut or eliminate tariffs on most goods traded between them. It also facilitates the movement of skilled professionals and encourages investment. Prior to the 2023 halt, over six rounds of talks had been held on this proposed pact.
Trade statistics
Trade figures show growth and decline
India's exports to Canada grew by 9.8% to $4.22 billion in 2024-25, up from $3.84 billion in the previous fiscal year. However, imports from Canada fell by 2.33% to $4.44 billion in the last fiscal year, down from $4.55 billion in 2023-24. The renewed interest in trade talks between India and Canada follows Prime Minister Narendra Modi's discussions with Canadian PM Mark Carney at the G7 summit earlier this year.