Commerce and Industry Minister Piyush Goyal asserted that both India and the European Union (EU) must respect each other's sensitivities to achieve a swift foreign trade agreement (FTA), while speaking at the 18th Asia Pacific Conference of German Business In his remarks during a panel discussion, Goyal outlined several key sensitivities that both regions must acknowledge and respect to facilitate a quicker FTA process.
“We have to appreciate the sensitivity both the sides have. If we start respecting that extraneous issues have no part directly relating to trade. There are multi lateral body that deals with labour that deals with climate changes and other issues” added Goyal. He mentioned that keeping these factors aside, both the regions need to focus on trade, promote deeper strategic partnership at a faster pace. Previously, the minister had advised the European Union to shun imposing “irrational standards” such as carbon tax, which he said act as trade barriers. Read:
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He noted that to accelerate the FTA, it's crucial to avoid meddling in issues that could jeopardize trade relations. Furthermore, India should not be pressurized to open certain sectors for trade. “With UAE, Australia, the very first decision we took was to respect each other sensitivities and encroach on issues that can hurt,” added Goyal.
He clarified that certain sectors, such as dairy, cannot be opened up for the FTA a stance that has also been acknowledged by countries like Australia. The minister emphasized that the EU must recognize that India is no longer in a weaker position and should be treated as an equal in trade agreements. Unlike previously, India can’t be imposed with regulations and forced to accept the same.
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“It is very important to respect that India is no more a pushover. We don’t negotiate today from the position of weakness. We negotiate today from the position of equal strength. We should respect each other with sovereignty and with that respect all other trades can start falling in place,” added Goyal.
The ninth round of the FTA talks concluded on September 27. The first India-EU FTA negotiation that was launched in 2007 was suspended in 2013 due to similar sensitivities. However, things took a positive turn after Prime Minister Narendra Modi’s participation in the Leaders’ Meeting on May 8, 2021 at the invitation of European Council’s president Charles Michel. Thereafter, negotiations were formally launched again in June 2022 by Goyal and European Commission executive vice-president Valdis Dombrovskis.
(With inputs from PTI)
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