'ToR discussions soon': India, Canada set to reopen free trade talks

India and Canada are preparing to reopen negotiations for a free trade agreement. Commerce and Industry Minister Piyush Goyal on Monday said the two sides will soon begin discussions on the Terms of Reference (ToR), the formal starting point for reviving talks that were paused in 2023.

"We are soon going to launch discussions for the terms of reference with Canada also," Goyal said while speaking to the media after the conclusion of negotiations for the India–New Zealand Free Trade Agreement.

India and Canada were earlier negotiating a trade pact, but the process was paused by Canada in 2023. The ToR, once agreed, will outline the scope and modalities of a proposed agreement and provide the framework for formal negotiations.

Goyal placed the Canada move within India's broader engagement with the Five Eyes grouping, saying India has so far finalised FTAs with three members of the alliance - Australia, the UK, and New Zealand. The Five Eyes intelligence-sharing network includes Australia, Canada, New Zealand, the UK, and the US.

He also pointed to progress with Washington, saying India is "at an advanced stage of negotiations for a bilateral trade agreement with the US."

India and Canada have already appointed their chief negotiators. Joint Secretary in the Department of Commerce Brij Mohan Mishra will lead negotiations from the Indian side, while Bruce Christie has been named Canada's chief negotiator.

India's exports to Canada rose 9.8 per cent to $4.22 billion in 2024–25 from $3.84 billion in 2023–24. Imports from Canada declined 2.33 per cent to $4.44 billion in the last fiscal from $4.55 billion a year earlier. Overall bilateral trade in goods and services stood at $18.38 billion in 2023.

In November this year, addressing the Indo-Canadian Business Chamber in New Delhi, Goyal said India sees considerable scope for collaboration with Canada in "critical minerals, mineral processing technologies, clean energy, nuclear energy and supply-chain diversification". 

The minister said India offers "strong advantages in emerging technologies such as artificial intelligence, quantum computing, machine learning and next-generation data centres", supported by "the world's largest annual pool of STEM graduates". He described India and Canada as "natural allies whose complementary strengths create significant opportunities for businesses and investors in both countries."

Referring to a recent meeting between Prime Minister Narendra Modi and Canadian Prime Minister Mark Carney on the sidelines of the G20 Summit, Goyal said both leaders agreed to begin negotiations for a "high-ambition Comprehensive Economic Partnership Agreement (CEPA)" and to double bilateral trade by 2030.