Ficci demands market access on 95% of goods traded with EU

Industry body Federation of Indian Chambers of Commerce and Industry (Ficci) has demanded market access on 95 per cent of goods traded with the European Union (EU), with whom India is negotiating a Free trade Agreement (FTA).

In a release here, the industry body said that 90 per cent market access by EU for Indian goods will not mean much for Indian exporters.

"Currently, EU has high tariffs on approximately 9 per cent of its overall tariff lines. And if the coverage of trade in goods under the FTA is limited to only 90 per cent for EU, then EU can easily retain practically all its sensitive products under the sensitive list of FTA," the release said.

A study done by Ficci observed that the Registration, Evaluation, Authorisation and Restriction of Chemicals Substances (REACH) regulation of EU, increased costs of Indian goods manifold, and is acting as a non-tariff barrier.

“It has been reported that the one-time cost for complying with REACH could be 5 to 10 per cent of the turnover of a manufacturer in addition to significant recurring cost required afterwards,” the release said.