India relaunches talk on FTA with Canada

The commencement of trade conversations comes in the backdrop of deteriorating geopolitical uncertainties following the Russian invasion of Ukraine, which has affected global trade.

India and Canada on Friday re-launched the bilateral comprehensive unrestricted trade dialogues in New Delhi which will fill in sectors comprising s agro-products, chemicals, footwear, and textiles, the government announced in a statement.

Commerce and industry minister Piyush Goyal and his Canadian counterpart decided to sign an interim agreement before advancing to a full pact. The two sides talked about the market access for Indian agriculture commodities such as sweet corn, baby corn, and banana during the fifth ministerial discussion on trade & investment.

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“Both sides decided to consider an interim agreement or Early Progress Trade Agreement (EPTA) that could be inferred early as a transitional step towards the CEPA. Ministers concluded that an EPTA would be agreeing with Article XXIV of the General Agreement on Tariffs and Trade,” the Ministry announced.

The commencement of trade conversations comes in the backdrop of deteriorating geopolitical uncertainties following the Russian invasion of Ukraine, which has affected global trade.

EPTA will comprise chapters on goods, services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement. It may also enclose any other sectors mutually agreed upon, the statement announced.

“Furthermore, Canada and India conceded to expand and protect bilateral investment, including through the intensification of negotiations toward a Bilateral Investment Agreement, while contemplating alternatives to achieve this goal alongside CEPA,” the release announced.

Canada is India’s 31st largest market, ranging for just $3 billion or 0.88% of India’s total outbound cargoes in April-January 2021-22. Objects from the North American nation stood at $2.5 billion during this period, composing for 0.52% of India’s total inbound shipments. With imports worth $2.68 billion, and exports of about $2.9 billion in 2020-21, India had a small trade abundance of nearly $200 million with Canada.