CPI(M) asks govt not to conclude FTA without public scrutiny

Says agreement is likely to worsen already burgeoning current account deficit and trade deficit

CPI(M) today asked the government not to carry out negotiations to conclude the Indo-EU free trade agreement (FTA) without public scrutiny, especially when a parliamentary committee was examining it.

The party expressed deep concern at the negotiations on the Bilateral Trade and Investment Agreement (BTIA) between the European Union and India being carried out "without any due scrutiny by Parliament or other democratic institutions.

"We understand that there is a move to conclude the negotiations by the middle of April," the CPI(M) Politburo said in a statement here.

The government should not conclude the negotiations at this stage but "wait for the report of the Parliamentary Standing Committee on Commerce, have a parliamentary debate on the issue and hold public consultations with all affected groups," it said.

Noting that the India-EU FTA was the "most ambitious and comprehensive" of all such accords, the party said, "Its impact 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."

Evidence from trade agreements that India has already entered "clearly indicate that they further worsen the country's trade deficit. For example, in the case of the agreement with Singapore, a trade surplus was rapidly converted into a deficit after the signing of the FTA."

It said that intellectual property, investment and government procurement chapters of the agreement would have a negative impact on virtually every area of economic activity -- including agriculture, industry and services.

"The agriculture sector is likely to be particularly affected by the dumping of subsidised agricultural products from the EU," the Left party said.