NEW DELHI: Clearly drawing a red line, commerce and industry minister Piyush Goyal on Friday asserted that the European Union’s insistence on concessions in the dairy sector could be a deal breaker for the proposed trade agreement. He argued that “extraneous” issues, such as labour and climate change, should be discussed at international forums.
“…if we respect each other’s sensitivities like with the UAE, Australia, and EFTA, we should not encroach on issues which can hurt. For example, dairy, I just cannot open up dairy. If the EU insists that I open up dairy, there is no FTA,” Goyal said at the Asia-Pacific Conference of German Business.
Dairy and agriculture have been two no-go areas for India, given the political sensitivities, and govt has refused to offer any concessions even as it went on signing trade pacts after years of standstill.
“You (EU) are 27 countries, who have different priorities; India has 27 states. I may be growing apples in one state which does not permit me to open apples,” he said, while stating that the trading bloc’s per capita income was much higher.
He also said that there is a need to focus energies on trade and on promoting investments and deeper strategic partnerships to push the talks. “If we respect (these) things, the FTA can be done very honourably, admirably, and fast,” Goyal said.
The minister’s assertion on issues such as labour and climate change is the second in as many weeks and may be a pointer to govt not being open to deep commitments in these areas, which for years were seen as “non-trade issues” with India arguing that they should be addressed in other forums such as the International Labour Organisation or the UN. In contrast, for years, the EU argued that these aspects are at the core of trade negotiations that it is undertaking and may be unwilling to engage.
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