Dairy sector will stay out of India-EU FTA: Union Minister Piyush Goyal
- In Reports
- 10:11 PM, Oct 25, 2024
- Myind Staff
In a recent statement, Union Minister Piyush Goyal emphasised that India would be unable to finalise a free trade agreement (FTA) with the European Union if the bloc continues to demand access to the Indian dairy industry. This remark underscores the ongoing tensions in negotiations, highlighting India's firm stance on protecting its domestic sectors.
A Reuters report quoted Goyal as saying, “A trade deal could be concluded swiftly if sensitivities were respected on both sides.” He made the comments at the Asia-Pacific conference of German business in New Delhi which was attended by the German economic minister Robert Habeck.
In related developments, German Minister Robert Habeck noted that discussions surrounding agriculture have led to the current impasse in the free trade agreement (FTA) negotiations, describing this aspect as the "most problematic" in talks between India and the European Union. He suggested that prioritising the industrial sector could yield more favourable outcomes for both parties. Habeck highlighted the significant disparities in agricultural employment, pointing out that only about 2% of Germany's population is involved in farming, compared to approximately 60% in India. This stark contrast complicates discussions around agricultural access and trade terms.
“So you can’t compare the two agricultural systems. If you were to open the markets completely … the disruption to the Indian market will be tremendous,” Habeck said.
India and the European Union agreed to resume free trade agreement (FTA) negotiations in July 2022, with the latest round of discussions occurring in September when officials from the 27-member bloc visited New Delhi. During the ninth round of talks, both parties addressed key trade issues, including goods, services, investment, and government procurement.
Additionally, they deliberated on essential regulations, such as rules of origin, sanitary and phytosanitary measures (SPS), and technical barriers to trade. Meanwhile, German Chancellor Olaf Scholz is currently in India, where discussions on the free trade agreement (FTA) are anticipated. As Germany is India's largest trading partner within the European Union, the talks surrounding the FTA are expected to be a focal point of his visit. The country has been a strong proponent of the India-EU FTA, further emphasising the importance of these negotiations.
According to a report by Financial Express, Jürgen Ratzinger, Managing Director of International Business at the Frankfurt Chamber of Commerce and Industry said, “The business community is strongly favouring the India-EU trade agreement. India is an important trading partner and the potential is huge. We want to tap into that growth story from India.”
In the fiscal year 2023-24, trade between India and Germany reached $26.48 billion. The successful completion of a free trade agreement (FTA) with the European Union has the potential to significantly boost trade relations by removing barriers and streamlining regulations. This development is expected to particularly benefit small and medium-sized enterprises (SMEs), enhancing their access to international markets.
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