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PM unmoved by Gandhi's FTA stance

10 May '06
3 min read

It is very important to realize this, said a government functionary.

A parallel accord with the Gulf Cooperation Council 'can kill our petrol-chemical industry,' he added. The difficult area with the India-Asean treaty is primarily linked to tolerant norms governing the value-addition norms and the rules of origin.

“Any Asean member can import, say, milk from China, skim it, and then export it duty-free to India to the detriment of our farmers,” he said.

This analysis has resulted in sturdy opposition from some ministries that want a complete 'negative list' of items to shield the concern of farmers.

This vision clashes with that of Asean members like Malaysia, which rebuff to have a negative list of items. Nevertheless, it appears to have reception of the fact that FTAs with Asean, Sri Lanka, Mauritius, Singapore and ultimately Thailand will go ahead.

A give and take device in the form of tariff rate quota (TRQ) should be accepted wherein duty-free or concessional duty market admission is made available only for a set quantity. The moment the set level is attained; normal duties are once again levied.

TRQs are being well thought-out for at least three items- tea, coffee and oil. There is also a claim for escalating the list to cover rubber and pepper.

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