Farm outfits, trade unions write to PM Modi against FTA with U.S.

Several organisations of farmers, fish workers, poultry traders, and winemakers and trade unions have written to Prime Minister Narendra Modi demanding that the negotiations with the United States for a free trade agreement (FTA) must be immediately stopped as the proposals are against the interests of workers and peasants.

They have demanded the suspension of all ongoing FTA negotiations and a comprehensive Parliamentary and public review of all FTAs. The trade unions have also sought full transparency in trade negotiations and protection of India’s agriculture, retail trade, workers, and rural economy from “corporate-driven” trade deals.

Citing reports that India is close to concluding an interim trade deal that may evolve into a comprehensive FTA covering all sectors, the organisations urged the Union government to immediately suspend the negotiations to protect farmers, workers, retail traders, rural livelihoods, food sovereignty, and the national economy.

“Several policy decisions taken under U.S. pressure have already adversely affected India. Reduced crude oil imports from Russia contributed to higher oil prices and inflation. The cancellation of the India-Russia fifth-generation fighter jet programme in 2018 weakened defence capabilities,” the organisations said in the letter.

The letter added that allowing imports of heavily subsidised U.S. agricultural products would destroy domestic production in affected sectors. “India has historically opposed U.S. farm subsidies at the World Trade Organisation.

Permitting subsidised imports now would undermine that long-standing position and the solidarity of countries that supported India in challenging such subsidies,” the letter said. It added that imports of maize, cattle and poultry feed, edible oils, and soybean products had harmed domestic production of coconut, groundnut, mustard, and other oilseeds.

“Any reduction in import duties or increase in wine and spirits imports under a trade agreement could seriously affect India’s wine and spirits industry, particularly in States such as Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh. Cheaper imports from major producing countries may reduce the market share of domestic producers and depress prices,” the letter said.

Organisations like Rashtriya Kisan Mazdoor Mahasangh, Bharatiya Kisan Union (Asli), Farmers Coordination Committee, Punjab Kissan Mazdoor Union, Poultry Association, Kisan Mazdoor Mahasangh, the Hind Mazdoor Sangh, and several other organisations have signed in the letter.