New Delhi: India and Canada are reviewing the scope of the proposed trade deal taking into account the changed global situation since talks ended in 2023, Commerce Minister Rajesh Agrawal said on Monday, saying the government is exploring the possibility of a preferential trade deal with Mexico to help Indian exporters avoid high tariffs of up to 50%.India’s top trade official said talks were at an advanced stage with several trading partners, including New Zealand and the European Union, and reiterated that India and the US were “very close” to finalizing the framework for their proposed bilateral trade deal.He said negotiations between India and the 27-nation bloc have entered the “most difficult” phase and both sides were committed to overcoming differences and concluding the talks soon. “We are in the most difficult phase, the most difficult issues are on the table… we are trying to mitigate that where we find a good balance. There are a number of issues on the table… CBAM is certainly on the table,” he told reporters, adding that the EU Carbon Border Adjustment Mechanism (CBAM) was also on the discussion table.Elaborating on the tariff hike on 1,455 products by Mexico, targeting countries with which the US country does not have a trade agreement, Agrawal said the move will affect about $2 billion of India’s exports, down from the coverage of $3.8 billion when the proposal was first floated a few months ago. “We are trying to see what is a good way forward and it is easier to sign a preferential trade agreement rather than a bilateral agreement (which includes multiple aspects).”Asked about the talks with Canada, which have been halted as the two countries seek to normalize ties following hostilities during Justin Trudeau’s tenure, Agrawal said chief negotiators of India and Canada will hold talks this week to find a way forward.
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