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Both sides had been airing optimism about making progress in the previous regime but delWine had reported in an Article in April 2013 that ‘the body language indicated that they might not be close to signing and further delays might consign the issue to the back burner.
After six years and almost 20 meetings between the two sides, there were a few issues still proving to be the stumbling blocks in 2013. Both India and the European Union shared the view that the talks in Brussels would give a boost to move forward. However, statements like “the talks provided a renewed momentum to bring the negotiations forward,” and it was a “positive meeting,” were quoted by delWine as mere pleasantries and belied the optimism expressed that the talks were at the final stages and that the two sides might ink the deal ‘within the next couple of meetings’ as predicted by print media. ‘As predicted by delWine a couple of years ago, the delay tactics are already on and the voices seem to be getting louder,’ has been proven right with an Article this morning in Livemint headlined as ‘India-EU FTA talks revival likely to be delayed’, and seems to be an extension of the same old chapter.
‘Demands for India to show more flexibility in the import of European automobiles, wine, cheese and legal services have delayed the prospects of a quick revival of talks on the FTA between EU and India. The deal’s fate will now be decided after “talks about talks” between senior officials on both sides and predictably even the dates for which are yet to be finalized, according to report.
“EU said before they formally agree to launch the negotiations, they would like to have another round at the secretary level. They want some amount of comfort in terms of flexibilities in automobiles, wines, cheese and legal services. We are waiting for a formal invite to the commerce secretary,” a commerce ministry official is quoted as speaking on the condition of anonymity, according to the report.
As might be expected as politically correct on both sides, both sides claim they are interested in a balanced deal but it would not be proper to say that negotiations would start soon. “Growing discomfort among Indian firms about the adverse effect of existing FTAs, which have led to imports shooting up and Indian businesses becoming uncompetitive, is another reason the government is being cautious while negotiating a new trade deal.”
Under the previous United Progressive Alliance (UPA) government, India signed free trade agreements with mostly developed countries such as South Korea, Japan and the Asean (Association of South East Asian Nations). In such trade deals, India is claimed to have ended up giving away more market access but gaining little due to the already low tariff levels in those countries. India has now decided to lay greater emphasis on services such as more work visas for its skilled professionals in partner countries.
Many wine producers in Europe are optimistic about the duties on fine wines coming down from 150% to 40-50% by next year. It may not be fair to tell them about their delusion, but they might be disillusioned to know that the duty reduction possibility has been moved to at least three years-till 2019. With the custom duty- free imports reduced from 10% of the export value to 3% from the current fiscal year, it means that there will be a tremendous pressure on the imports of such wines and not a happy sign for those fine wine producers.
If there is one report that seems to be so outdated on hindsight, it would have to be:
Fine Wines from EU may get Cheaper Next Year
but it also shows the working of governments and how carefully they move in India.
For other related articles, please visit:
Decision on restart of India-EU negotiations soon
EU-India FTA may soon be on Back Burner
Blog: Treaty with EU likely to go on the Back Burner
Fine Wines from EU may get Cheaper Next Year
Subhash Arora |