[Marxistindia] on India-ASEAN Free Trade Agreement in Goods

[news from the cpi(m)]

                                                         August 14, 2009



Press Statement


The Polit Bureau of the Communist Party of India (Marxist) has issued
the following statement:



              On India-ASEAN Free Trade Agreement in Goods


The Free Trade Agreement in Goods with the ASEAN signed by the Indian
Commerce Minister in Thailand yesterday reflects the misplaced
priorities of the Congress led Government at a time of global recession
and a worsening agrarian situation. The FTA has been signed without any
discussion about its possible impact in the Indian Parliament.


This FTA would gradually eliminate tariff, starting from January 2010,
in 80% of the goods that are traded between India and the ASEAN
countries. Such across the board elimination of customs duties would be
harmful for domestic industries, agriculture and fisheries, which have
already been adversely affected by the economic slowdown. This would
have an adverse impact on the economies of the states, particularly
Kerala. The claim made by the Indian Government that excluding some
items from the list of tariff concessions would address the
sensitivities in agriculture and other sectors do not hold much water.
The sharp cuts in import duties in the future would affect the
livelihood of a very large number of people in the country. 


The Government of India should immediately take appropriate measures to
protect the interests of those sections who will be affected by this
agreement. It should bring out a white paper explaining the impact of
this agreement on the Indian economy and discuss the issue in
parliament. 

end