INDIA REJECTS EU DEMAND TO INCLUDE SOCIAL CLAUSES IN FTA DISCUSSIONS - USDA FAS

INDIA REJECTS EU DEMAND TO INCLUDE SOCIAL CLAUSES IN FTA DISCUSSIONS India has rejected a European Union demand to include social clauses such as labor and environmental standards in the proposed Free Trade Agreement (FTA), saying there are other forums to discuss these issues. Responding to the EU Trade Commissioner, Mr. Karel De Gucht’s recent statement that he was hopeful of addressing social issues in the FTA with India through “appropriate language,” Indian Commerce Secretary, Dr. Rahul Khullar said “There are certain non-negotiables for us. If they (EU) don’t accept FTAs without social clauses, then I would say tough luck.” He said at present the proposed India-EU pact is not even called an FTA, adding, “It is only called a broad-based bilateral trade and investment agreement.” This implies a very gradual approach to India’s liberalization of trade in goods and services with the 27 member countries of the EU. (Source: Business Line, 03/12/10)