Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. announced a comprehensive Strategic Partnership in Vancouver, launching bilateral free trade negotiations targeting completion by December 2026. The deal includes joint maritime defence exercises in the South China Sea, Status of Visiting Forces Agreement, and mutual logistics support arrangements. According to AP, the partnership represents Canada's most concrete move yet to build trade architecture independent of the United States, with the Philippines chairing ASEAN this year providing procedural authority over the bloc's agenda. The two leaders framed the defence commitments as consistent with shared aspirations for international law and freedom of navigation, without naming China explicitly.
Commerce and Industry Minister Piyush Goyal announced on Saturday that negotiations for a proposed India-Peru free trade agreement are unlikely to conclude anytime soon, citing significant concerns over market access in certain products. According to reports from PTI, Goyal stated on the sidelines of the 17th Toy Biz International B2B Exhibition that there are many products where we cannot offer them market access. He emphasized that he does not see Peru FTA happening very soon due to these ongoing challenges. The bilateral trade negotiations, which started in 2017, have faced persistent hurdles over the years, with many products where we cannot offer them market access being the primary concern.
Despite the FTA challenges, trade between India and Peru has demonstrated strong growth, with bilateral trade jumping 67.5% to $10 billion in 2025-26, compared to $5.98 billion in the previous year. As reported by PTI, exports from India stood at $1.4 billion while imports reached $8.87 billion, resulting in a trade deficit of $7.47 billion for India. India's main exports to Peru include motor vehicles, cotton yarn and pharmaceuticals, while the country imports gold, copper ores and concentrates. The substantial increase in trade volume reflects the growing economic ties between the two nations despite ongoing FTA negotiations.
Gold imports from Peru rose 78.45% to $7.9 billion in 2025-26, from $4.43 billion in 2024-25, making it the toughest sticking point in any potential trade deal. According to experts cited by PTI, New Delhi would have to weigh duty concessions on gold, which makes up about 90% of India's imports from Peru. This substantial increase in gold trade volume has complicated negotiations as India seeks to balance market access with protecting domestic interests. The dramatic rise in gold imports has become the primary concern for Indian negotiators in the ongoing FTA discussions.
On a separate front, Goyal announced that an Indian team will travel to Canada on Monday for the next round of negotiations on the proposed Comprehensive Economic Partnership Agreement. As reported by PTI, Goyal stated that the Canada FTA is progressing well and expressed confidence that the agreement could be concluded in the next six months or so. The two sides held their second round of talks in India on May 8, with a target of $50 billion in bilateral trade by 2030 - a steep climb from the current $7.95 billion in 2025-26. Canada represents a market of 41.65 million people and a GDP of $2.34 trillion at purchasing power parity.
