Proposed India-EU FTA draws flak
Financial Express | 2008-11-27
Proposed India-EU FTA draws flak
ASHOK B SHARMA
New Delhi, Nov 26 : A group of Indian trade unionists, farmers, fishworkers and intelligentsia have criticised the secret negotiation which are underway between India and the European Union to strike a free trade agreement (FTA). They have demanded a halt to the ongoing negotiations till transparency is achieved in the process.
Negotiations for a FTA between India and EU began in 2006 and since then there had been six rounds of discussions between the two parties. It is expected that the final negotiations would be completed in early 2009.
In a memorandum to the leader visiting delegation of the European Parliament, Ignasi Guardans Cambo, the trade unionists, farmers and fishworkers who have grouped themselves under the banner - forum on FTAs - said, "As is evident from various official documents pertaining to the proposed FTA, it is being negotiated with a view to conclude a new generation FTA that will cover many areas other than trade in goods like trade in services, investment proposals, intellectual property rights, competition policy and government procurement. Hence, the proposed FTA will have far reaching consequences both for policy space of the Indian state and on the lives and livelihood of Indian citizens. In the context of the present global economic crisis it is even more imperative that these consequences are better understood and addressed."
Quoting the report of the High Level Trade Group (HLTG) the memorandum said that India would be required to reduce tariff lines by 90% with the remaining 10% to be negotiated or completely excluded. This would cause an influx of imports to India, affecting farmers, fisherfolks and leading to closure of infant industries. As the difference existed between Indian and European process and product standards it was not clear whether the interests of micro and small processors in the country would be served, the memorandum said.
"The EU is deliberately trying to impose a TRIPS plus regime on India," said a noted intellectual property analyst BK Kaeyala.
The chairperson of National Fishworkers’ Forum, Harekrishna Debnath said, "There is a possibility of European fishing vessels making entry into Indian water in a big way, impelling the livelihood of local fishermen."
The Forum on FTA, constituted by 75 organisations, apprehended that the proposed FTA would cause major impact on food security, healthcare and livelihood. The opening up of the financial sector would invite a crisis similar to the present global financial crisis. European companies entry into the area of government procurement would create problems.
