FIEO pitches for FTA with China; asks to resume India-EU FTA

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SME Times News Bureau | 22 Aug, 2014
In order to boost India's shipment, apex exporters body Federation of India Export Organisations (FIEO) Thursday urged the Indian government should resume the free trade agreement (FTA) with European Union and also said that India should have FTA with China.

"EU and China are very important aspect for our future and I feel that the government should take care about that," FIEO President, M Rafeeque Ahmed told media at press conference in New Delhi on Thursday.

He said, "Why we are afraid of China. If we will enter FTA with China, it will benefit us. The government should not hesitate to talk about this. If Thailand can have an FTA with China, why not India. India should seriously look at this."

Media reports that this statement assumes significance as Indian manufacturing industry is strongly against FTA with China. The industry always complains of dumping of Chinese products in India which has already imposed anti-dumping duties on them.

The Department of Industrial Policy and Promotion (DIPP), under the Commerce and Industry Ministry, too has opposed these pacts saying it impacts manufacturing sector, it added.

Ahmed also said that wages are increasing in China and companies are shifting their manufacturing bases from China.

"India should take advantage of this opportunity. Setting up of export clusters or parks will help in attracting investments which are shifting from China," he said.

Further he said that FTA with EU would help in boosting exports of sectors including textiles and leather.

India and the EU are negotiating the Bilateral Trade and Investment Agreement (BTIA) since June 2007 and have missed several deadlines to conclude the talks due to differences among the two sides on the level of opening up of the markets.

"It is good to note that India's exports to many of the countries with whom we have signed FTA has produced good results for exports," he added.

India has implemented FTAs with Japan, Asean, Bhutan, Nepal, Sri Lanka, Thailand, Singapore, South Korea and Malaysia.