PM steps in to save ASEAN-India FTA
Roadblocks in the way of ASEAN-India Free Trade Agreement appear to have been removed following prime minister Manmohan Singh's intervention.
By PTI |
NEW DELHI: Roadblocks in the way of ASEAN-India Free Trade Agreement appear to have been removed following prime minister Manmohan Singh's intervention on the crucial issue of sensitive farm products like pepper, rubber, palm oil, coffee and tea.
A meeting, convened for this purpose here today by the prime minister, was attended by commerce minister Kamal Nath and agriculture minister Sharad Pawar.
Both the Ministries have been asked to hold consultations on Tariff Rate Quota (TRQ) approach for these products in the FTA ahead of the Trade Negotiating Committee of ASEAN-India FTA meeting beginning April 24, official sources said.
Commerce ministry has mooted TRQs under the FTA to the ASEAN member countries, which export these products in the wake of Agriculture Ministry's strong objection to their inclusion in the trade liberalisation programme.
TRQ is a specific quota offered to a country for exports at a fixed duty, which is lower than the importing country's normal duty.
As per agriculture ministry, these commodities form a part of its list of Special Products in the World Trade Organisation and have sensitivities involved, so under any FTA it cannot agree to have zero tariff on them.
In some of the commodities like pepper and palm oil, their rising imports from Sri Lanka under the Indo-Sri Lanka FTA has impacted this sector which mainly consists of small growers and manufacturers.
But if these products are not included in the FTA, then objective of such an agreement would be lost which worked on principle of all trade meaning at least 80 per cent of trade.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
