BJP raises red flag on India-EU treaty

Demands discussion in parliament

The Bharatiya Janata Party (BJP) has demanded that the terms of the under-negotiation agreement on trade and investment with the European Union (EU) be discussed in Parliament.

Prime Minister Manmohan Singh intends to ask for his German counterpart’s support on the proposed treaty during his ongoing visit to that country.

The BJP, the main opposition party, has also discussed the issue with other members of the coalition it leads, the National Democratic Alliance, and has decided to take up the issue with other opposition parties to collectively raise the issue in Parliament. BJP leaders said, they believe the issue will be used in the coming Assembly elections in six states and the 2014 Lok Sabha election.

“The Prime Minister has gone to Germany without holding discussions with any political party or state governments while the standing committee on commerce (of Parliament) is discussing the issue. The terms of the agreement should be first discussed in Parliament. There is no clarity what is being discussed by the Union government,” said Murli Manohar Joshi, a senior leader of the BJP, to reporters.

BJP seniors said the agreement will benefit a group of EU countries and not the people of India. They said sectors related to agriculture, health and dairying will be the worst affected and the government should have at least taken the views of state governments.

“Agriculture and health are state subjects. This kind of unilateral decision making by the Union government is an attack on the federal structure of the country. The government should have discussed with the state governments, political parties and other stakeholders before taking this decision,” Joshi added.

He said the EU’s gain in industry and manufacturing will be $7,947 million from the intended treaty, almost double the gain India will have from textile, garments and leather. EU’s bilateral trade will increase significantly in industry and manufacturing, primary products, vehicles, textiles, leather and clothing, and in agro foods, said Joshi.

BJP members say if the agreement is signed, India will have to remove 90 per cent of its tariffs but there was no assurance of the EU lifting its subsidies that are to the disadvantage of the agriculture sector in this country.

“There is no provision to discuss subsidies in the agreement. In the short and long run, it will be bad for both farmers and agro-industries in this country,” said Joshi.