Farmers' Body to Campaign Against India-EU Trade Agreement
Samyukt Kisan Morcha opposes India-EU FTA, citing economic colonization and agricultural impact.
Photo by Bernd 📷 Dittrich
The Samyukt Kisan Morcha (SKM), an umbrella body of farmers' organizations, has announced campaigns against the India-European Union Free Trade Agreement (FTA), terming it a blueprint for economic colonization. The SKM claims the FTA will lead to the systematic capture of the Indian market by corporations, decimate domestic agriculture and industry, and ruin employment opportunities.
They allege that the government has agreed to eliminate import duties on various agricultural products and processed foods, while maintaining expensive sanitary and phytosanitary (SPS) barriers to block agricultural exports from India. The SKM accuses the government of diluting India's standards to ease the entry of EU produce.
UPSC Exam Angles
GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
GS Paper 2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Potential question types: Statement-based questions on trade agreements, their impact, and related policies.
Visual Insights
India and EU Trade Partners
Map showing India and the European Union member countries, highlighting the potential impact area of the FTA. The color gradient indicates the level of trade between India and each EU member.
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More Information
Background
The seeds of modern trade agreements can be traced back to the post-World War II era, with the General Agreement on Tariffs and Trade (GATT) established in 1948. GATT aimed to reduce trade barriers and promote international trade. Over the decades, GATT evolved into the World Trade Organization (WTO) in 1995, expanding its scope to include services, intellectual property, and agriculture.
India's engagement with trade agreements has been a gradual process, initially focusing on regional agreements and later expanding to bilateral and multilateral arrangements. Early agreements often prioritized tariff reductions on specific goods, while more recent agreements, like the proposed India-EU FTA, encompass a broader range of issues, including investment, intellectual property rights, and regulatory cooperation. The debate surrounding these agreements often revolves around the potential benefits of increased market access versus the potential risks to domestic industries and agriculture.
Latest Developments
In recent years, India has been actively reviewing and renegotiating its existing trade agreements, reflecting a shift towards a more strategic and nuanced approach to trade policy. The focus has been on ensuring that trade agreements align with India's economic interests and development goals. For example, India withdrew from the Regional Comprehensive Economic Partnership (RCEP) in 2019 due to concerns about its potential impact on domestic industries.
Simultaneously, India has been pursuing new trade agreements with countries like Australia and the United Kingdom. The ongoing negotiations with the EU are expected to address issues such as market access for agricultural products, intellectual property rights, and sustainable development. The outcome of these negotiations will likely shape India's trade relations with the EU for years to come.
Frequently Asked Questions
1. What is the Samyukt Kisan Morcha (SKM)'s main objection to the India-EU Free Trade Agreement (FTA)?
The SKM opposes the India-EU FTA because they believe it's a blueprint for economic colonization, leading to the capture of the Indian market by corporations, decimating domestic agriculture and industry, and ruining employment opportunities.
2. According to the SKM, what are the potential impacts of the India-EU FTA on Indian agriculture?
The SKM claims the FTA will lead to the decimation of domestic agriculture because the government has allegedly agreed to eliminate import duties on various agricultural products and processed foods, while maintaining expensive barriers to block agricultural exports from India.
3. What specific import duty reductions related to agricultural products are mentioned in the context of the India-EU FTA?
The context mentions import duty reductions on wine (150% to 20% & 30%), spirits (150% to 40%), beer (110% to 50%), kiwis and pears (33% to 10%), and sausages (110% to 50%).
4. Why is the Samyukt Kisan Morcha (SKM) campaigning against the India-EU FTA now?
The SKM is campaigning against the India-EU FTA because they believe the agreement, in its current form, will negatively impact Indian agriculture, industry, and employment, leading to economic colonization.
5. What are Sanitary and Phytosanitary (SPS) measures, and why are they relevant to the India-EU FTA?
Sanitary and Phytosanitary (SPS) measures are regulations to protect humans, animals, and plants from diseases, pests, or contaminants. They are relevant to the India-EU FTA because the SKM alleges that the government is maintaining expensive SPS barriers to block agricultural exports from India while easing the entry of EU produce.
6. What are the potential benefits and drawbacks of the India-EU FTA for the common citizen, considering the SKM's concerns?
Potential benefits could include access to cheaper goods and increased trade. However, drawbacks, as highlighted by the SKM, include potential job losses in domestic industries, a negative impact on farmers due to increased competition, and concerns about the quality and safety of imported goods if Indian standards are diluted.
Practice Questions (MCQs)
1. Consider the following statements regarding Free Trade Agreements (FTAs): 1. FTAs eliminate tariffs and other trade barriers between participating countries. 2. FTAs always lead to an increase in trade surplus for all participating countries. 3. Sanitary and Phytosanitary (SPS) measures are not applicable in FTAs. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statement 1 is CORRECT: FTAs aim to reduce or eliminate tariffs and non-tariff barriers between member countries, promoting freer trade. Statement 2 is INCORRECT: FTAs do not guarantee a trade surplus for all members. Some countries may experience a trade deficit due to increased imports. Statement 3 is INCORRECT: SPS measures are crucial in FTAs to ensure food safety and prevent the spread of pests and diseases. They are often a point of negotiation.
2. With reference to the India-European Union Free Trade Agreement (FTA), which of the following statements is most likely to be a concern raised by Indian farmers' organizations?
- A.Increased access to EU markets for Indian agricultural products.
- B.Reduction in import duties on EU agricultural products entering India.
- C.Harmonization of Indian agricultural standards with EU standards, facilitating exports.
- D.Increased investment in Indian agriculture by EU companies.
Show Answer
Answer: B
Option B is the most likely concern. Farmers' organizations often fear that reducing import duties on agricultural products from developed countries like those in the EU will lead to increased competition and potentially lower prices for domestic produce, negatively impacting their livelihoods. The news summary also points to this concern.
3. Which of the following is NOT a typical objective of Sanitary and Phytosanitary (SPS) measures in international trade agreements?
- A.Protecting human health from foodborne risks.
- B.Preventing the spread of pests and diseases among plants and animals.
- C.Promoting fair competition by ensuring uniform production standards.
- D.Ensuring that imported products meet domestic safety standards.
Show Answer
Answer: C
Option C is NOT a typical objective. While SPS measures do aim to ensure safety and prevent risks, their primary focus is not on promoting fair competition by enforcing uniform production standards. SPS measures are about health and safety, not about leveling the playing field in terms of production methods.