22-03-2010 Column : Why Kerala opposes Asean FTA

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Column : Why Kerala opposes Asean FTA

Joseph Vackayil
Posted: Friday, Jul 31, 2009 at 2058 hrs IST
Updated: Friday, Jul 31, 2009 at 2058 hrs IST

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22-03-2010 Column : Why Kerala opposes Asean FTA
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: India is set to sign a free trade agreement (FTA) with the 10-nation Association of South East Asian Nations (Asean) at the next Indo-Asean summit in
Thailand in December 2009. The FTA is said to have the potential to multiply bilateral trade between India and Asean. India has several compulsions
under its ‘Look East’ policy to be in good terms with its southeastern neighbours which are close to China. A Sino-AseanFTA is nearly in place.

The Indo-Asean FTA would reduce tariffs to zero in over 4,000 goods, out of the 5,000 that are traded, in phases over the net six to ten years.

Though the 2007-08 bilateral trade, at $34.38 billion, constituted only 9.60% of India’s global trade, it touched all the commodities, from fish to rubber,
on which farmers of Kerala survived. With increasing input cost and labour shortage, only the cultivation of cash crops, because of better returns, has
remained viable. Hence, there was a spontaneous outburst against the FTA from sociopolitical leaders from the state. Asean also has the same produces
to market as Kerala has—tea, coffee, pepper, rubber, edible oil and marine products.

Kerala’s apprehensions, given vent to in Parliament and during Cabinet meetings, have been allayed by highlighting the protective steps in the FTA like
partial reduction in import tariffs on highly sensitive farm goods, the sensitive list of goods with partial duty cuts (606 products) and a negative list with no
duty cuts (489 goods, including 302 farm items).

These assurances and protective measures would have to be taken note of by the people and political leaders of Kerala. They have to wake up to the
global context from the present home market insularity and recognise the wider national and international economic imperatives.

Better farm practices have to be adopted in a competitive global market environment. With the Doha Round of the WTO negotiations nearing
completion, and the world markets getting integrated, India as an emerging economic superpower would not be able to remain isolated for parochial
interests.

joseph.vackayil@expressindia.com

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Comments

» FTA agreem ent

Posted by Mr. X on 2009-08-15 10:35:10.596989+05:30
Why dont we think of trading our products to the outside world.Only the best one can survive...

Reply Forward

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22-03-2010 Column : Why Kerala opposes Asean FTA
» Indo Asean FTA
Posted by K.J.Kurian on 2009-08-01 21:12:28.394336+05:30
Siginig of FTA with Asean may be of utmost priority to India as an emerging super power.The
proposed FTA is going to reduce tariffs to zero in over 4000 goods.Kerala's products from fish to
rubber would be in the above list.Kerala farmer including the poor fisherman on the coastal belt, till
date had been toiling hard to captur international markets and in a way was capable of amassing
foreign exchange to the mother country.And Kerala products had acquired a dominant position in the
entire world market.Today the situation is entirely different.Soaring input costs, shortage of farm
labour, climate change and threat from unknown diseases;all have lead the Kerala farmer nowhere
else other than to suicide.When the FTA comes in to operation in Dec.suicide and nothing else
would be the solace of the Kerala farmer. Should India become a super power at the cost of Kerala
farmer.

Reply Forward
» kerala
Posted by Ajay Rajappan on 2009-08-14 16:55:33.491176+05:30
how is the idea about trading our products to other countries.

Reply Forward

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