India-Canada re-launch FTA talks
PremiumPiyush Goyal and his Canadian counterpart Mary Ng agreed to sign an interim agreement before progressing to a full pact.
NEW DELHI : India and Canada on Friday resumed discussions for a comprehensive free trade pact that will cover sectors such as agricultural products, chemicals, footwear and textiles. As part of the initiative, commerce and industry minister Piyush Goyal and his Canadian counterpart Mary Ng agreed to sign an interim agreement before progressing to a full pact.
The two sides discussed market access for Indian farm produce such as sweet corn and bananas during the fifth ministerial dialogue on trade and investment on Friday. “Both sides agreed to consider an interim agreement or Early Progress Trade Agreement (EPTA) that could be concluded early as a transitional step towards the CEPA. Ministers agreed that an EPTA would be consistent with Article XXIV of the General Agreement on Tariffs and Trade," the commerce ministry said in a statement.
The trade talks come in the backdrop of worsening geopolitical tensions following the Russia-Ukraine conflict, which has hit global trade and led to a sharp rise in commodity prices, especially crude oil. “Canada and India agreed to promote and protect bilateral investment, including through the intensification of negotiations toward a Bilateral Investment Agreement, while considering options to achieve this goal alongside CEPA," the commerce ministry said.
Canada is India’s 31st largest market, accounting for $3 billion or 0.88% of India’s total outbound shipments in April-January 2021-22. Imports from the North American nation stood at $2.5 billion during this period, making up 0.52% of India’s total inbound shipments. With imports worth $2.68 billion and exports worth $2.9 billion in 2020-21, India had a small trade surplus of nearly $200 million with Canada. New Delhi and Ottawa also agreed to work towards recognizing Canada’s systems approach to pest risk management in pulses. The two sides also discussed potential for strengthening cooperation in the health sector given that India is a reliable partner for Canada in supplying quality and affordable pharmaceuticals, particularly generic drugs, according to the statement.
ravi.dutt@livemint.com
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