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What is the News?
India and Canada held the fifth Ministerial Dialogue on Trade & Investment(MDTI).
The meeting was co-chaired by India’s Commerce and Industry Minister and Canada’s Minister of International Trade.
What are the key highlights from the dialogue?
India and Canada have agreed to formally re-launch the negotiations for the India-Canada Comprehensive Economic Partnership Agreement(CEPA).
They will also consider signing an Interim Agreement or Early Progress Trade Agreement (EPTA) that could bring early commercial gains to both countries.
India-Canada Trade
Total bilateral trade between India and Canada including goods and services crossed $11 billion.
Major Indian exports to Canada include drugs and pharmaceutical products, iron & steel products, marine products, cotton fabrics & readymade garments (RMG) while key Canadian exports to India comprise pulses, fertilizers, coal and crude petroleum.
What is the need for India to sign FTA with other countries?
India is gearing up to finalize FTAs with the UK, Australia, EU, Canada and other major economies.
The Economic Survey highlighted India’s need for FTAs as it will help it to diversify exports and explore new shores for the promotion of its products. According to survey, 40% of India’s exports is limited to just seven countries. This indicates that India needs to do a lot more on widening its export basket and give a further push to promoting exports to new shores.
Moreover, negotiations for FTAs are a part of India’s broader strategy to sign “balanced” trade agreements with key economies. This move gained traction after India pulled out of the Regional Comprehensive Economic Partnership (RCEP) talks in 2019.
Source: This post is based on the article “India – Canada to re-launch the Comprehensive Economic Partnership Agreement (CEPA) negotiations” published in PIB on 11th Mar 2022.
