Union Comm Minister Piyush Goyal Likely To Visit Canada To Resume Free Trade Agreement Talks

As per recent information, Union Commerce and Industry Minister Piyush Goyal is likely to visit Canada in February to resume free Trade Agreement (FTA) negotiations between the two nations. Last week, Chief negotiators from both nations held virtual discussions to find a way forward on the proposed Comprehensive Economic Partnership Agreement (CEPA). Notably, the main motive of the meeting was to design the agenda and chart the path before the free trade agreement talks.  

Free Trade Agreement talks after a tumultuous relationship

Notably, the diplomatic ties between India and Canada had turned sour two years back. However, this year in November, both nations concluded a broad framework and agreed to restart negotiations for a comprehensive trade deal. Talks for free trade agreement are anticipated to begin a fresh and there will be a lot of emphasis in decreasing tariff and non- tariff barriers. Interestingly, there could also be discussions on ways to increase investments in both countries. But, a bilateral investment treaty (BIT) for investor protection may not be priortised at this stage. Last week, Commerce Secretary Rajesh Agarwal has stated that in two years , countries have moved on, the world has moved on. A lot of other challenges in trade are coming up. We need to take stock as to where we stopped.

Both nations re launched talks for trade deal

India and Canada formally re-launched talks for a comprehensive trade deal to create new opportunities for strengthening trade and investment flows. It was also decided that an early progress trade agreement (Epta) would serve as a transitional step towards a Cepa. However, negotiations were halted nearly two years ago as diplomatic ties between India and Canada plummeted to an all-time low following a spat over the killing of Khalistani separatist Hardeep Singh Nijjar in June 2023. On that time, Canadian Prime Minister Justin Trudeau alleged a potential Indian link to the killing, alleges that New Delhi categorically rejected. At the time, negotiations were at an advanced stage. Both sides had hoped to conclude the deal by the end of 2023.