No India-EFTA Free Trade Agreement Without Consultation with States: AIKS
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THE Narendra Modi led BJP government is said to be on the verge of concluding a Free Trade Agreement (FTA) with the European Free Trade Association comprising of four rich developed European nations namely Iceland, Liechtenstein, Norway, and Switzerland. The earlier Congress-led UPA government and the present BJP-led NDA government have carried on secret negotiations since January, 2008 to conclude the Trade and Economic Partnership Agreement (TEPA). The All India Kisan Sabha (AIKS), in a statement issued on March 9, has condemned the BJP government for concluding such FTAs that are bound to have far-reaching consequences for agriculture and other sectors without following federal principles and the time-tested norms of parliamentary democracy. There has been absolutely no consultation with states or any discussion in the parliament. The BJP government has to explain why this secrecy and intransparent approach to matters of national importance.
Apparently, the TEPA primarily focuses on reducing tariffs for high-value goods like fish from Iceland and Norway, advanced chemicals, pharmaceuticals, machine equipment, dairy products, processed agricultural products like yoghurt, cheese, beverages, Swiss chocolates etc. It is a matter of serious concern that some of the EFTA members like Iceland and Norway are major players in fish and other marine products. The livelihoods of Indian fishers and fish-workers could be adversely affected from an unequal FTA. Notably, Indian government has been drastically cutting subsidies for agriculture, dairying and fisheries. In contrast the investment by Norway and Iceland in fisheries is many times higher than Indian investments. Similarly, in the case of Switzerland which is majorly into processed foods, dairy products, coffee and other beverages, Indian farmers will be highly disadvantaged. It is claimed that there will be improved market access for agricultural products like rice. This agreement is clearly at the behest of big agribusinesses like Nestle, Austevoll Seafood/Leroyetc and big Indian players in rice export. Concerns around Intellectual Property Rights especially in the pharmaceutical sector also cannot be ignored given the fact that Switzerland and Norway have major pharmaceutical companies and issues related to patenting, compulsory licensing, data exclusivity etc., have a bearing for India.
The huge number of people engaged in agriculture, dairying and fisheries has to also be contrasted with the situation in the EFTA countries. For instance, the EFTA countries have no more than about 6,000 fishers while marine as well as inland fishers in India number not lesser than 3 crores; majority of whom are small and marginal. The per capita income of India in 2023 was around Rs 2 lakh (2,500 dollars) while that of the EFTA countries is disproportionately high ranging between no less than Rs 50-58 lakh (60,000-70,000 dollars). To expect a level playing field and equal opportunity is far-fetched.
Indian farmers have been hit hard by the earlier FTAs leading to drastic fall in domestic production and destruction of livelihoods. Dairy farmers, fishers, fish-workers and coffee farmers could be adversely hit by this FTA. The AIKS demands that the BJP government should not go forward with the TEPA without proper debate and discussion in parliament, with state governments and peasant organisations. Kisan Sabha calls upon the peasantry and all sections of society to unite and remain vigilant against such unequal FTAs and force the BJP government to withdraw from such FTAs that compromise the country’s interests.
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