India has reiterated its firm stance on protecting its domestic dairy industry, a key factor in the ongoing negotiations for a free trade agreement (FTA) with the European Union (EU).
Commerce and Industry Minister Piyush Goyal emphasised the importance of mutual respect and understanding of sensitivities in order to expedite the trade deal. He underscored that India cannot compromise on its dairy sector, suggesting that any insistence from the EU on opening up this market could derail the entire FTA process.
Goyal drew parallels with India’s recent trade agreements with the UAE, Australia, and EFTA, highlighting the successful negotiation of deals that respected each nation’s specific concerns. He pointed out that India’s decision to opt out of the Regional Comprehensive Economic Partnership (RCEP) was largely due to concerns over potential harm to the domestic dairy industry.
The minister further explained that India’s diverse regional economy, with varying levels of development and agricultural practices, presents unique challenges in negotiating trade deals. While some regions may be ready to liberalise certain sectors, others may require more protection.
The EU, a bloc of 27 countries with significantly higher per capita income, must be mindful of these disparities and tailor its approach accordingly. India’s stance on dairy is clear: it is a non-negotiable issue in the pursuit of a balanced and beneficial FTA.
