India To Protect Farmers & Dairy Sector’s Interests in Free Trade Agreement, says Piyush Goyal

According to Commerce and Industry Minister Piyush Goyal, India will fully protect the interests of farmers and the dairy sector in the planned free trade agreement (FTA) with the European Union.

He was here on an official visit to discuss ways to strengthen bilateral trade and investment ties with leaders and the business sector. In addition, the minister travelled to Paris for the India-France business summit.

Goyal stated that Italy and France have expressed unwavering support for the early conclusion of trade talks between India and the EU.

During the discussions in Italy and France, he added, India highlighted the disparities in economic conditions and per capita income between the two countries.

However, the types of economic potential that India affords for EU enterprises are enormous, and "nobody in the world can provide those," he added.

"With all of this in mind, we would pursue the FTA... We will defend the interests of farmers and the dairy industry... "We've done it with trade pacts with the UAE and Australia as well," Goyal said.

The fifth round of negotiations between India and the European Union (EU) is set to take place in New Delhi from June 19 to June 23.

India and the 27-nation bloc resumed negotiations on June 17 last year after a gap of over eight years on the proposed agreements on trade, investments and Geographical Indications (GI). Top officials at the commerce secretary level would meet in August to review the progress of talks.

India had started negotiations for a trade pact with the EU in 2007 but the talks stalled in 2013 as both sides failed to reach an agreement on key issues, including customs duties on automobiles and spirits and the movement of professionals.

India’s merchandise exports to EU member countries stood at about USD 65 billion in 2021-22, while imports aggregated USD 51.4 billion.

A geographical indication (GI) is generally an agricultural, natural, or manufactured product (handicrafts and industrial commodities) that originates in a certain geographical location. Typically, such a name gives a guarantee of quality and uniqueness, which is mostly attributable to its origin.

“India will not compromise on its interests… that is not possible,” Goyal has added.

On the European Union’s announcement of imposing a carbon tax on certain sectors like metals, he said that the issue is part of the discussion.

India has earlier stated that it is concerned about the European Union’s announcement of imposing a carbon tax, saying such measures require New Delhi to recalibrate its approach towards a free trade agreement.

The EU is introducing the Carbon Border Adjustment Mechanism (CBAM) from October 1 this year. CBAM will translate into a 20-35 per cent tax on select imports into the EU starting January 1, 2026.

According to a report by the economic think tank Global Trade Research Initiative (GTRI), the carbon border adjustment mechanism being implemented by the European Union will have an adverse impact on India’s exports of metals such as iron, steel and aluminium products to the EU.

In 2022, India’s 27 per cent exports of iron, steel, and aluminium products worth USD 8.2 billion went to the EU.

-With PTI Inputs
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