Key trade pacts in mind, Delhi looks at multi-nation visit by PM in December, Pg1

Key Highlights:

• Prime Minister Narendra Modi is expected to undertake a multi-nation visit in December to finalize key trade agreements.
• The India-Canada Comprehensive Economic Partnership Agreement (CEPA) is anticipated to be finalized during this period.
• The India-EU Free Trade Agreement (FTA) is scheduled for signing in Brussels on December 16, 2026.
• Negotiations for the India-US Bilateral Trade Agreement (BTA) are nearing completion, with officials stating it is "90% complete" and "done and dusted".
• The Ministry of Finance has reviewed and forwarded a new model Bilateral Investment Treaty (BIT) to the Cabinet Secretariat.
• Approximately 4-5 new BITs, including one with Canada, are expected to be finalized soon under this revised framework.

Detailed Insights:

• The Prime Minister's potential visit destinations include the US, Canada, and at least two European countries, possibly coinciding with the G20 summit in Miami.
• The India-EU FTA negotiations, which resumed in June 2022 after a prolonged break, concluded in January 2026. This agreement is expected to eliminate tariffs on over 90% of goods for the EU and 86% for India.
• The India-Canada CEPA is in its fourth round of negotiations, with two chapters already concluded, aiming for a full agreement by the end of 2026. Both countries target expanding bilateral trade to $50 billion annually by 2030.
• The India-US BTA framework was established in February 2026, but further discussions are ongoing to address changes in US tariffs and secure competitive advantages for India.
• The review of the 2016 model BIT was initiated following the Union Budget for 2025-26 to enhance investor-friendliness and attract sustained Foreign Direct Investment (FDI).
• The 2016 model BIT faced criticism for mandating a five-year local remedy period before international arbitration, which deterred foreign investors.
• The new model BIT aims to reduce this local remedy period, as demonstrated by the 2024 BIT with the UAE, which stipulated a three-year period.
• India's government intends to exclude tax-related provisions from the new model BIT to safeguard its sovereign right to tax.
• Net FDI inflows in India for the first six months of 2026 stood at $12 billion, while overall FDI inflows for FY2025-26 reached a record $94.53 billion.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A broad trade agreement covering trade in goods, services, investment, and other areas of economic cooperation.
• Free Trade Agreement (FTA): A pact between two or more countries to reduce or eliminate barriers to trade, such as tariffs and quotas.
• Bilateral Investment Treaty (BIT): An agreement between two countries that establishes rules for foreign investment, aiming to protect and promote investments.
• Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.