Context: India and Canada have signed a billion long-term uranium supply agreement and launched formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
About India–Canada Negotiation for CEPA:
What it is?
- The Comprehensive Economic Partnership Agreement (CEPA) is a proposed broad-based trade and economic agreement between India and Canada. It seeks to reduce trade barriers, promote investment, and enhance cooperation across goods, services, technology, and strategic sectors.
Aim:
- Increase bilateral trade to billion by 2030.
- Facilitate smoother market access for goods and services.
- Strengthen resilient supply chains, especially in critical minerals and clean energy sectors.
Key Features:
- Tariff Liberalisation: Gradual reduction or elimination of customs duties on selected goods.
- Services & Investment Framework: Enhanced access in IT, education, financial services, and professional mobility.
- Critical Minerals Cooperation: Securing supply chains for lithium, cobalt, uranium and rare earth elements.
- Energy Security Dimension: Long-term uranium supply agreement strengthens India’s nuclear energy programme.
- Defence & Strategic Dialogue: Institutionalisation of the India–Canada Defence Dialogue.
- Technology & Innovation Collaboration: Partnerships in AI, quantum computing, semiconductors, healthcare, and supercomputing.
- Regulatory Framework (ToR Signed): Terms of Reference define negotiation structure, frequency, and roadmap toward a balanced CEPA.
Relevance in UPSC Exam Syllabus
- GS Paper II – International Relations
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- Bilateral relations: India–Canada diplomatic reset
- Trade agreements and economic diplomacy
- Strategic partnerships and defence cooperation
- GS Paper III – Economy
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- Free Trade Agreements (FTAs) and CEPAs
- Supply chain resilience and critical minerals strategy
- Energy security (uranium supply & nuclear power)
