The end of trade disputes? India deal is a 'valuable lesson'

The European Union's trade agreement with India shows that it is possible to reconcile trade openness with agricultural protection, Ksenija Simović, an expert from the European agricultural association Copa-Cogeca, told PAP. This is a valuable lesson for all current and future trade negotiations, she added.

Negotiations on a trade agreement were concluded at the EU-India summit in Delhi. The agreement stipulates that India will gradually eliminate its prohibitive tariffs, among others. for cars. The contract also provides Elimination or reduction of customs duties by India on certain agri-food products from the EU, including European alcoholse.g. customs duties on vodka, currently up to 150 percent, are to be reduced to 40 percent.

Simović told PAP that the situation with the agreement with India cannot be directly compared with the agreement with the South American Mercosur countries, which was concluded on January 17, and was massively criticized by farmers.

– Every trade negotiation takes place in a specific economic, agricultural and geopolitical context. In the case of India, the agreement reflects mutual recognition of the high sensitivity of agriculture on both sides. In this context, the EU has also decided to protect its most sensitive agricultural sectors by excluding certain products and introducing safeguard mechanisms. India acted similarly, protecting, for example, its dairy market, even if it had an offensive interest, she noted.

European sensitive products such as beef, poultry, milk powder, ethanol, garlic, rice and sugar will be excluded from liberalization. The EU will open its market to some products from India by introducing quotas: sheep and goat meat, sweet corn, grapes, cucumbers, dried onions, rum with molasses and starch.

In Simović's opinion, the EU-India agreement shows that it is possible to reconcile trade openness and agricultural protection. As the Copa-Cogeca expert added, however, the condition is that the negotiations be conducted with solid safeguards.

– This is a valuable lesson for all current and future trade negotiations – she noted.

Simović emphasized that during the implementation of the agreement, reciprocity of production standards for agri-food products introduced to the European market must be ensured. “Imports will have to meet not only EU food safety requirements, but also key production standards to ensure fair competition for European farmers and maintain consumer confidence,” she said.

From Brussels Magdalena Cedro (PAP)

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