India and Canada Set to Exclude Sensitive Sectors in Trade Pact Negotiations

India and Canada Focus on Low-Hanging Fruit in Free Trade Agreement Negotiations

India and Canada are prioritizing areas of convergence and avoiding sensitive sectors in their negotiations for a proposed free trade agreement, according to Commerce and Industry Minister Piyush Goyal. The two countries are working towards a Comprehensive Economic Partnership Agreement (CEPA), with the third round of negotiations currently underway in Ottawa.

During a three-day official visit to Canada, Minister Goyal emphasized the importance of focusing on low-hanging fruit and capturing areas of convergence. He stated that the two countries should leave sensitive issues out of the agreement, allowing them to make progress without getting bogged down in contentious areas. This approach is expected to facilitate the conclusion of negotiations by the end of the year.

The proposed CEPA aims to significantly reduce and eliminate import duties on the majority of goods traded between the two countries, while also easing norms to promote trade in services and boost investments. Currently, bilateral trade between India and Canada stands at USD 17 billion, with a target to increase it to USD 50 billion by 2030.

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Minister Goyal's visit to Canada included meetings with government representatives, businesses, investment companies, pension funds, and insurance companies. He highlighted India's potential for investment, citing its strong intellectual property protection and large startup ecosystem, with approximately 2.3 lakh entities registered as startups. The country's digital public infrastructure has also demonstrated significant capabilities, with vast potential for bilateral cooperation in sectors such as AI, cleantech, agritech, and deep tech.

During his meetings, Minister Goyal discussed investment opportunities in India with Jo Taylor, President and CEO of Ontario Teachers' Pension Plan, and John Graham, President and CEO of CPP Investments. The discussions centered on expanding long-term institutional investments in India across various sectors, including infrastructure, logistics, renewable energy, transportation, financial services, and digital infrastructure.