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The CPI (M) has expressed deep concern over the negotiations on the Bilateral Trade and Investment Agreement (BTIA) between the European Union and India, saying that it has proceeded without any due scrutiny by Parliament.
“We understand that there is a move to conclude the negotiations by the middle of April,’’ the party's Polit Bureau said in a statement.
Negative impact
It said the impact of the FTA with EU on the economic and social fabric of the country could well be deep and long-lasting. “The agreement is likely to worsen the already burgeoning current account deficit and trade deficit,’’ it added.
The party claimed that intellectual property, investment and government procurement chapters of the agreement will have a negative impact on agriculture, industry and services.
It said higher standards of intellectual property protection will have a negative impact on health services, while strong investor protection mechanisms will undermine the Government’s ability to regulate industrial and financial corporations in national interest.
Industry concerns
The Polit Bureau said the opening up of Government procurement to foreign firms will undermine even the minimal social protection measures in place such as the public distribution system.
“The agriculture sector is likely to be particularly affected by the dumping of subsidised agricultural products from the EU,’’ the party said.
It added that several sections like the automobile industry and the milk co-operative, Amul, has expressed concerns over the FTA.
“Claims that the FTA will open up additional markets for Indian exporters are unsubstantiated and are not, in any case, going to compensate for the expected surge in imports,’’ the statement said.
Non-transparent process
It added that the entire negotiating process has been non-transparent, with a total lack of public consultation with affected sections, parliamentary oversight, or the involvement of state governments.
“The Parliamentary Standing Committee on Commerce is examining the impact of FTA but the Government's determination to sign the EU-India BTIA without waiting for the committee’s report betrays a shocking disregard for Parliamentary democratic institutions,’’ the CPI(M) said.
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