Union Minister of Commerce and Industry Piyush Goyal on Friday said that India will completely protect the interests of farmers and the dairy sector in the free trade agreement (FTA) with the European Union, reported PTI. The comment comes as chief negotiators of India and the European Union (EU) are scheduled to meet from June 19-23 in New Delhi for the fifth round of FTA negotiations.
Piyush Goyal is on an official visit to Europe to hold discussions with leaders and the private sector. The visit aims to enhance trade and investment ties between the countries. He also participated in the India-France business summit in Paris yesterday.
According to Piyush Goyal, Italy, and France have pledged their unwavering support for the swift conclusion of talks for the trade deal between India and the EU. He claimed that at the discussions in Italy and France, India made a point of highlighting the disparities between the two countries’ economies and per capita income, the report added. “Keeping all this in mind, we would do the FTA… We will protect the interests of farmers and dairy sector… We have done that with UAE and Australia trade pacts also,” Goyal said.
After a pause of more than 8 years, negotiations on the proposed agreement on trade, investments, and Geographical Indications (GI) between India and the 27-nation bloc, EU resumed on June 17 of last year, the report said, adding that in August, senior officials at the level of the commerce secretary would gather to assess how the negotiations were going.
India and the EU had begun trade talks in 2007, but they came to a halt in 2013 because neither side could agree on critical points, such as customs tariffs on alcohol and vehicles and the free movement of professionals.
India’s merchandise exports to EU member countries stood at about $65 billion in 2021-22, while imports aggregated $51.4 billion. A GI is primarily an agricultural, natural, or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory. Such a name typically carries a guarantee of quality and originality, which is mostly attributed to the location of its origin.
“India will not compromise on its interests… that is not possible,” Goyal said. He also said there is a discussion about the European Union’s announcement to impose a carbon price on some industries, such as the metals industry. India has already expressed its concern over the European Union’s plan to impose a carbon tax, stating that such actions necessitate that the Indian government reevaluates its strategy for pursuing an FTA.
Beginning on October 1 of this year, the EU will implement the Carbon Border Adjustment Mechanism (CBAM). CBAM will result in a 20-35 per cent levy on a limited number of imports into the EU beginning January 1, 2026.