Do not see India-Peru FTA happening anytime soon, says Piyush Goyal

New Delhi, India Jul 4, 2026 ALN: New Delhi: Commerce and Industry Minister Piyush Goyal on Saturday stated that negotiations for a proposed India-Peru free trade agreement (FTA) are unlikely to conclude anytime soon, citing concerns over market access for certain products.

Goyal emphasized, "There are certain concerns. There are many products where we cannot offer them market access. I do not see Peru FTA happening very soon," he told reporters on the sidelines of the 17th Toy Biz International B2B Exhibition. This statement reflects the complexities and challenges often inherent in international trade negotiations, particularly in the context of developing economies that may have different priorities and structures.

The idea of a free trade agreement between India and Peru was first proposed in 2017, with both countries expressing interest in enhancing bilateral trade relations. However, the progress has been slow due to the aforementioned market access issues. These challenges often arise from differing tariff structures, agricultural policies, and the protection of sensitive industries within each country. In Peru's case, the agricultural sector is particularly significant, as it is a major exporter of products like avocados, grapes, and asparagus. India, on the other hand, has been protective of its agricultural markets, which complicates negotiations.

The agricultural sector's importance in Peru cannot be overstated. The country has successfully positioned itself as a major exporter of various agricultural products, particularly to markets in North America and Europe. For instance, Peru's avocados and grapes have gained popularity in international markets, leading to a significant increase in exports. However, the Indian government has been cautious about liberalizing its agricultural market, which is vital for its domestic farmers. This protective stance is designed to shield local agriculture from international competition, thereby complicating negotiations with countries like Peru that seek greater access for their agricultural exports.

In contrast to the stagnant discussions with Peru, Goyal provided an update on the India-Canada FTA, noting that negotiations are progressing well. He mentioned that a team of Indian officials will be visiting Canada for the next round of discussions. "Canada FTA is progressing well. Our team is going on Monday for the next round of negotiations. We are trying to conclude it in the next six months or so," he said. The India-Canada FTA is seen as a significant opportunity for both nations, as they aim to increase trade, investment, and cooperation. Canada is a key partner for India, especially in sectors such as technology, agriculture, and natural resources.

The contrasting situations of the India-Peru and India-Canada FTAs highlight the diverse landscape of international trade negotiations. While the India-Peru FTA faces significant hurdles primarily due to market access issues, the India-Canada FTA seems to be on a more favorable trajectory, reflecting the different levels of alignment and mutual interests between the countries involved. Canada, with its advanced and similar regulatory standards, presents a more compatible partner for India compared to Peru.

Furthermore, Goyal informed that on July 13, he will be traveling with External Affairs Minister S. Jaishankar and Union Minister for Railways, Information and Broadcasting, and Electronics and IT, Ashwini Vaishnaw, to Brussels for the India-EU Trade and Technology Council (TTC) meeting. The TTC is a platform designed to enhance cooperation in trade and technology between India and the European Union. It aims to address various challenges in the digital , sustainable development, and supply chain resilience, among other areas.

The TTC meeting is expected to supplement the finalized FTA and facilitate its implementation moving forward. The India-EU FTA has been in discussions for several years, and both parties are eager to finalize it to bolster their ties. The EU is one of India’s largest trading partners, and a comprehensive FTA could lead to increased trade flows, investment opportunities, and technological collaboration. The EU's interest in India as a trading partner is driven by India's large market potential and its growing , which presents numerous opportunities for investment and trade.

FTAs are critical tools for countries looking to enhance their relationships by reducing tariffs and other barriers to trade. They can lead to increased exports, job creation, and growth. However, the process of negotiating an FTA can be complex and time-consuming, often requiring compromises on both sides. The challenges faced in the India-Peru negotiations underscore the importance of thorough assessments of market readiness and the potential impact on domestic industries.

As countries like India pursue FTAs, they must balance the interests of various stakeholders, including domestic industries, consumers, and international partners. The success of these agreements often hinges on the ability to navigate these interests and reach mutually beneficial outcomes. In the case of India-Peru, the need for careful consideration of agricultural policies and market access has become a significant roadblock, highlighting the broader implications of trade negotiations on domestic policies.

In summary, while the India-Peru FTA faces significant hurdles, primarily due to market access concerns, the India-Canada FTA shows promise for a timely conclusion, reflecting a more aligned partnership. The forthcoming discussions in Brussels regarding the India-EU FTA further indicate India's commitment to expanding its trade relations on a global scale. As these negotiations unfold, they will likely have broader implications for India's trade policy and its role in the global . The contrasting progress of these FTAs illustrates the complexities of international trade, where differing priorities and protectionist measures can significantly influence the pace and success of negotiations.