New Delhi: A Free Trade Agreement (FTA) is on the horizon between India and the European Union (EU). However, India has one condition on which it is not ready to budge at all. Now this condition will decide whether a free trade agreement between 27 countries with India comes into force or not. Recently, Commerce and Industry Minister Piyush Goyal made it clear that if the European Union keeps insisting on opening the dairy sector with India, then FTA will not be possible. In fact, lakhs of farmers are engaged in the dairy sector. Opening of this sector may adversely affect the income of these farmers. These products are directly related to the food security of the country. In such a situation, complete opening up could put important resources and production into the hands of foreign companies, which could pose a threat to food security.
It is important to respect sensitivity
Goyal has said that first it is necessary to respect the sensitivities between the 27 countries of the EU and the 27 states of India. He has said that both sides need to respect each other’s sensitivities. Referring to the United Arab Emirates (UAE), Australia and EFTA, the minister said that we respected each other’s sensitivities. Did not put pressure on issues that could cause harm. For example dairy. He clearly said, ‘I cannot open the dairy sector.’ If EU insists that India open up the dairy sector, there will be no FTA.
Goyal said that Australia signed its first FTA with India without dairy. He respected India’s issues. Goyal said that both sides will have to respect each other’s sovereignty. It was also made clear, ‘We are no longer submissive. We do not negotiate from a position of weakness.
Mentioned the huge difference in per capita income
Goyal emphasized that the per capita income of EU member states is much higher than that of Indian states. He said, ‘If we respect these things then FTA can be very respectable, commendable and fast.’
He also said that to take the talks forward, there is a need to focus on promoting trade and investment and deepening strategic partnerships. This will be a political decision. Negotiations cannot be left to bureaucracy alone.