The free trade deal that India signed with New Zealand this month provides Canada with a template to emulate as Ottawa seeks to complete the comprehensive economic partnership agreement with New Delhi, according to those closely observing developments in that regard.
“The FTA is good reading material for Ottawa, which is looking to conclude a Canada–India Comprehensive Economic Partnership Agreement (CEPA) by the end of 2026 — an ambitious timeline that, given Ottawa’s desire to diversify trade, could be met,” the Asia-Pacific Foundation of Canada said in an analysis.
It pointed out that as in the case of Canada, New Zealand and India entered into negotiations towards an FTA in 2010 and those efforts came to nought while the relaunch of talks last year resulted in the finalisation of the deal in just nine months. The Foundation added the FTA was “a win for both sides and a potential model for Canada in forging its own trade deal with India.”
That point of view was supported by Ritesh Malik, chair of the Canada-India Foundation, as he said, “New Zealand just gave Canada the instruction manual and Canada better read it carefully. Nine months, concluded. The secret? NZ didn’t demand perfect reciprocity.”
“The NZ deal is proof India moves fast when the other side comes in good faith,” he added. Malik, though, wasn’t convinced CEPA can be accomplished this year, describing the deadline as “aspirational.” The target for concluding negotiations was set when the two Prime Ministers, Narendra Modi and Mark Carney, had their bilateral meeting in New Delhi in March during the latter’s maiden visit to India after assuming charge of the Canadian Government a year earlier.
“They (New Zealand) gave India 100% duty-free access on day one, accepted asymmetry on tariff lines, recognized AYUSH, India’s traditional medicine system, as a diplomatic gesture that cost nothing but meant everything in Delhi,” Malik said.
Agriculture and labour mobility could be the trickier issues to navigate during the talks.
APF Canada’s vice-president for research and strategy Vina Nadjibulla said, “When both sides are willing to make something happen, it’s possible.” She added the deal showed that India “is serious about diversifying trade agreements” and the framework provided Canada with an “opportunity” to “look at what was decided.”
She said with Commerce and Industry Minister Piyush Goyal expected to visit Canada later this month with a large business delegation, “strong political involvement” could drive the CEPA negotiation process along.
Malik said Goyal’s visit is “where optics become architecture” and his job in Canada would be “to lock in the negotiating cadence, formalize sectoral working groups, and bring enough business muscle to prove this reset has transaction-level substance, not just prime ministerial handshakes.”
With Canada’s Minister of International Trade Maninder Sidhu expected to visit India this summer, the political push is expected to continue. A series of high-level engagements are expected through this year including meetings between the PMs.
APF Canada underscored the reality that while Canada-India trade was worth about CA$ 31 billion in 2024, it was “structurally imbalanced and under-leveraged.” Among the objectives outlined by the two PMs for CEPA is to boost bilateral trade to CA$ 70 billion by 2030.