Congress flags concerns over India-EU FTA

New Delhi: The Congress on Wednesday flagged concerns after the India-EU free trade pact was sealed, including the Modi government’s “failure” to secure an exemption for India’s aluminium and steel-makers from the Carbon Border Adjustment Mechanism and tariff reduction or relief on over 96% of the bloc’s exports to India.

Congress general secretary in-charge communications Jairam Ramesh said there are also concerns about the EU’s strict health and product safety rules, which will continue to be in force over Indian exports even after the FTA, as well as the concern about India’s largest export to the EU -- refined fuels.

A large portion of this fuel is sourced from Russia, and there needs to be clarity on the future of these trade routes amidst pressure from Washington DC, the Congress leader said.

India and the 27-nation European Union first started negotiations for a Free Trade Agreement (FTA) in June 2007, he pointed out.

Ramesh said 16 rounds of negotiations took place but were suspended in May 2013 because of lack of agreement on many important issues.

Talks on an FTA remained suspended till June 2022 when they were resumed, he noted.

“This hugely-hyped FTA is the biggest trade opening India has given to any trade partner (tariff reduction or relief on over 96% of EU exports to India) and it is expected to double India’s imports from the EU. Its impact on India’s trade deficit will have to

be monitored closely,” Ramesh said.

“The Modi government’s failure to secure an exemption for India’s aluminium and steel-makers from the Carbon Border Adjustment Mechanism (CBAM) is one of Congress’ key concerns regarding the FTA,” he said.