India and Canada Set to Finalize Terms of Reference for Free Trade Agreement Talks
FTA Negotiations Likely to Resume This Week
India and Canada are poised to take a significant step toward strengthening bilateral economic ties, with both sides expected to finalize the Terms of Reference for a proposed Free Trade Agreement later this week. Commerce and Industry Minister Piyush Goyal confirmed on Tuesday that discussions are progressing and an official launch of negotiations could follow shortly.Canadian Prime Minister Mark Carney is scheduled to arrive in India on February 26. During his visit, the two nations aim to conclude the Terms of Reference, which will define the scope, structure, and modalities of the proposed trade pact.
Talks Resume After 2023 Pause
India and Canada had earlier been negotiating a trade agreement, but discussions were paused by Canada in 2023. Both countries have now agreed to restart negotiations from the beginning, citing significant shifts in the global trade environment over the past two years.The fresh round of talks is expected to reflect evolving trade dynamics and strategic priorities on both sides.
Bilateral Trade Performance and Trends
Trade data indicates steady engagement between the two economies.India’s exports to Canada increased 9.8 percent to USD 4.22 billion in 2024 to 25, up from USD 3.84 billion in 2023 to 24.
However, imports from Canada declined 2.33 percent to USD 4.44 billion in the last fiscal year, compared with USD 4.55 billion in 2023 to 24.
Overall bilateral trade in goods and services stood at USD 18.38 billion in 2023, underscoring the economic significance of the relationship.
Strong Diaspora and Educational Linkages
Beyond trade, India and Canada share deep people to people connections. Canada is home to approximately 2.9 million members of the Indian diaspora and over 4,27,000 Indian students, reflecting strong cultural and educational ties.EU FTA Implementation Timeline
In a related development, Goyal also indicated that the recently announced Free Trade Agreement with the European Union could be implemented in the first quarter of next year.He urged Indian exporters to take full advantage of upcoming trade agreements and emphasized the importance of increasing awareness about these FTAs in smaller cities and towns across the country to ensure broader participation in global trade opportunities.
With the Terms of Reference expected to be finalized soon, the India Canada Free Trade Agreement negotiations are set to regain momentum, potentially reshaping bilateral trade engagement in the coming months.
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