“India to discuss ToR for FTA with Canada” says Minister Piyush Goyal

Union Commerce Minister Piyush Goyal said on Monday, December 22 that India would soon start discussing terms of reference (ToR) for a proposed free trade agreement (FTA) with Canada. Notably, the ToR will explain the scope and structure of the negotiations. Interestingly, it is a formal step towards reviving talk that were halted by Canada in 2023.

What did Minister Piyush Goyal say about Free Trade Agreement with Canada?

The minister stated: “We were soon going to launch discussions for terms of reference (ToR) with Canada, adding that negotiations with the US were progressing well. We are already at an advanced stage in our discussions with the US”. Now, this will enable both nations to go forward with their respective discussions regarding bilateral trade relations. The proposed engagement will allow both nations to recognise their mutual interests while offering a venue to discuss trade-related issues via dialogue. The initiation of discussions related to terms of reference (ToR) will offer the foundation for increasing two-way flows between these nations. Not only this, but it will offer a benchmark for other negotiations.

India’s recent Free Trade Agreement with New Zealand

Recently, India and New Zealand concluded a Free Trade Agreement (FTA) on Monday, December 22.  PM Narendra Modi held a telephonic conversation with his New Zealand counterpart, Christopher Luxon, during which the two leaders jointly announced the conclusion of what they described as a historic, ambitious, and mutually beneficial Free Trade Agreement (FTA).  Under this Free Trade Agreement (FTA), New Zealand will discard tariffs on 100 per cent of its tariff lines, granting duty-free market access for all Indian exports. It’s a move expected to significantly enhance India’s export competitiveness and improve its integration into global value chains.

India’s Free Trade Agreement with Oman

India on Thursday, December 18 signed a Free Trade Agreement with Oman. Notably, this Free Trade Agreement (FTA) is expected to significantly boost India’s economic engagement with the Gulf region and reinstate its broader trade diversification strategy. It is signed during Prime Minister Narendra Modi’s visit to the Gulf country and by Union Commerce Minister Piyush Goyal and Oman’s minister of Commerce, Industry and Investment Promotion Qais Bin Mohammed Al Yousef.