Commerce Minister Piyush Goyal says Peru trade pact is unlikely in the near future, while Canada and EU trade negotiations continue to make steady progress.
Key Highlights
- India says Peru FTA is unlikely to be finalized soon due to market access concerns.
- Gold imports remain the biggest hurdle in negotiations with Peru.
- India-Peru bilateral trade reached USD 10 billion in FY 2025-26.
- India recorded a USD 7.47 billion trade deficit with Peru.
- Next round of India-Canada CEPA talks begins this week.
- India aims to conclude the Canada trade deal within six months.
- India-EU Trade and Technology Council meeting scheduled for July 13 in Brussels.
- India-EU FTA legal review is underway, with implementation expected in 2027.
India-Peru FTA Faces Fresh Roadblocks
Commerce and Industry Minister Piyush Goyal has indicated that the proposed India-Peru Free Trade Agreement (FTA) is unlikely to be finalized anytime soon due to unresolved concerns over market access for several products.
Speaking on the sidelines of the 17th Toy Biz International B2B Exhibition in New Delhi, Goyal said India cannot provide market access for certain products requested by Peru, making an early agreement difficult despite negotiations having started in 2017.
One of the biggest sticking points remains gold imports, which account for nearly 90% of India’s imports from Peru. Experts believe offering tariff concessions on gold could significantly impact India’s domestic market, making negotiations more complex.
Trade Between India and Peru Continues to Grow
Despite delays in the FTA, bilateral trade has expanded rapidly.
Trade between the two countries surged 67.5% to USD 10 billion during FY 2025-26. India exported goods worth USD 1.4 billion, while imports reached USD 8.87 billion, resulting in a trade deficit of USD 7.47 billion.
India mainly exports:
- Motor vehicles
- Cotton yarn
- Pharmaceuticals
Major imports from Peru include:
- Gold
- Copper ores
- Mineral concentrates
Gold imports alone increased nearly 78% during the last financial year, reaching USD 7.9 billion.
Canada Trade Deal Gains Momentum
While Peru negotiations have slowed, discussions with Canada are progressing positively.
Piyush Goyal confirmed that an Indian delegation will travel to Canada for the next round of negotiations on the proposed Comprehensive Economic Partnership Agreement (CEPA).
The government is aiming to conclude negotiations within the next six months.
India and Canada have also set an ambitious target of increasing bilateral trade to USD 50 billion by 2030.
India-EU Trade Talks Enter Final Stage
The minister also announced that he will visit Brussels on July 13 along with External Affairs Minister S. Jaishankar and Electronics & IT Minister Ashwini Vaishnaw for the India-EU Trade and Technology Council (TTC) meeting.
India and the European Union have already concluded negotiations for their proposed trade agreement, with legal review currently underway. The pact is expected to be signed later this year and could come into effect in 2027.
Government officials believe the TTC framework will help smooth implementation of the broader India-EU trade agreement while strengthening cooperation in technology, digital governance, clean energy, and resilient supply chains.
