Canada and India have a long-standing economic relationship, with both countries sharing a strong commitment to free trade and investment. However, the question remains: does Canada have a free trade agreement with India?
The short answer is no, Canada and India do not currently have a free trade agreement in place. In fact, negotiations for a comprehensive economic partnership agreement (CEPA) between the two countries first began in 2010 but have been stalled since 2017.
Despite the lack of a formal trade agreement, Canada and India continue to engage in trade and investment with each other. In 2019, bilateral trade between the two countries reached CAD $8.4 billion, with Canada exporting primarily mineral products, precious stones and metals, and machinery to India.
In terms of investment, India is now one of the fastest-growing sources of foreign direct investment (FDI) in Canada, with Indian companies investing in a variety of sectors including information technology, agriculture, and pharmaceuticals. Canada, in turn, has also invested heavily in India’s economy, particularly in the energy and infrastructure sectors.
While the negotiations for a CEPA have not yet been successful, both countries remain committed to enhancing their economic relationship. To this end, Canada and India have established joint working groups to identify areas for increased cooperation, such as intellectual property rights, e-commerce, and skills development.
In conclusion, Canada and India do not currently have a free trade agreement in place, but their economic relationship continues to grow through trade and investment. Negotiations for a CEPA are ongoing, and both countries remain committed to finding new ways to enhance their economic ties. As these efforts continue, the potential for increased trade and investment between Canada and India remains strong.