India and Canada Strengthen Trade and Investment Ties at 6th Ministerial Dialogue

The 6th Ministerial Dialogue on Trade & Investment (MDTI) between India and Canada took place in Ottawa on May 8, 2023, with the aim of deepening bilateral ties and economic partnership. Co-chaired by Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs and Food, and Public Distribution and Textiles, Government of India, and the Hon’ble Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, Government of Canada, the meeting highlighted the robust trade and economic relationship between the two nations.

Solid Foundation of Trade and Economic Relationship: The Ministers acknowledged the strong foundation of the trade and economic relationship between India and Canada. They recognized the significant opportunity to further strengthen bilateral ties and economic cooperation. The ongoing discussions at the G-20 meetings under the Indian Presidency were also highlighted, with Minister Ng commending India’s role as a global economy of the future. Minister Ng expressed support for India as G20 Chair and the priorities pursued by India in the G20 Trade and Investment Working Group.

Focus on Indo-Pacific Region: Minister Ng emphasized the importance of the Indo-Pacific region for Canada’s prosperity, security, and environmental challenges. She noted the rollout of Canada’s Indo-Pacific Strategy and acknowledged India’s crucial role in the region.

Bilateral Trade and Investment: Despite the challenges posed by the COVID-19 pandemic and the war in Ukraine, bilateral trade between Canada and India showcased resilience in 2022. Trade in goods reached nearly C$12 billion, marking a significant 57% increase compared to the previous year. The Ministers also recognized the contribution of the services sector, with bilateral services trade valued at C$8.9 billion in 2022. They acknowledged the growth of two-way investments, appreciating the efforts made by both countries to facilitate business growth and attract investment.

Opportunities for Trade Expansion: Both Ministers recognized the complementary trade-related strengths of India and Canada, highlighting the potential for significant expansion in trade and services across traditional and emerging sectors. They called for enhanced cooperation and partnerships in areas such as agricultural goods, chemicals, green technologies, infrastructure, automotive, clean energy, electronics, and minerals and metals. Regular discussions on trade remedy issues of bilateral importance were also emphasized.

Advancing Comprehensive Economic Partnership: The Ministers underscored the institutional role of the MDTI in promoting bilateral trade and investment ties. They reaffirmed their commitment to a comprehensive trade agreement, relaunching the India-Canada Comprehensive Economic Partnership Agreement (CEPA) negotiations in 2022. As a transitional step, negotiations for an Early Progress Trade Agreement (EPTA) have been ongoing, covering commitments in goods, services, investment, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, and dispute settlement.

Cooperation in Critical Sectors: Given the disruptions caused by the COVID-19 pandemic and the war in Ukraine, the Ministers discussed the importance of promoting the international rules-based order and supply chain resiliency. They emphasized the need for cooperation in sectors such as clean technologies, critical minerals, electric vehicles and batteries, renewable energy/hydrogen, and artificial intelligence (AI). Coordination on critical mineral supply chain resiliency and business-to-business engagement on critical minerals were among the agreed-upon measures.

Science, Technology, and Innovation: Both sides acknowledged the potential for strengthening cooperation in science, technology, and innovation. They emphasized collaboration in priority areas, including start-ups, innovation partnerships, and enhanced engagement between research and business communities. Initiatives such as organized forums for SMEs and women entrepreneurs were also discussed.