EU wants India to prohibit 'discriminatory buy national practices': Report

India's Make in India and Atmanirbhar initiatives aim to favour domestic manufacturing and discourage imports, the European Union said

 The European Union passed a resolution on July highlighting what it calls India's “discriminatory ‘buy national’ practices”, which mostly relate to the Make in India, and Atmanirbhar Bharat initiatives. EU claims that these practices by India aim to favour domestic manufacturing, discourage imports and thus “significantly affect market access for EU firms”, reported Financial Express.
 
The text, endorsed by the EU Parliament will guide the 27-member bloc’s negotiations for a free trade agreement (FTA) with the government of India.
 
A text pitched for a comprehensive chapter on public procurement to enforce the principles of transparency and non-discrimination in public procurement through effective remedy procedures, according to the report.

 

The bloc is seeking a review of any technical barrier to trade ICT products, medical devices, toys, alcoholic beverages, polished diamonds, agricultural products, food, and steel with India.
 
The EU's demand comes at the same time when India wants to go beyond the technical barriers to trade agreement by the World Trade Organization (WTO). India wants to “ensure that there is no duplication of testing and certification, and streamline licensing schemes, quality control orders, and clinical investigations," the FE report stated.
 
The EU wants FTA negotiators to find swift solutions to the longstanding market access issues across sectors, however, it is against “compromising on content in favour of a speedy conclusion.” This means the bloc will not rush to conclude an FTA deal with India just for the sake of having an agreement.

 
FTA talks between the EU and India resumed in June after a gap of nine years when negotiations were stuck over stark differences. The EU had insisted that India heavy import duties on automobiles, alcoholic beverages, and dairy products, while New Delhi wanted greater access to the bloc's market for the nation's skilled professionals. The talks went on for 16 rounds between 2007 and 2013.
 
In the text, the EU has pitched for the total elimination of tariffs and quotas on a reciprocal basis, with a focus on sensitive products. The bloc wants to ensure that the duty cut will not be offset by a hike in domestic taxes and levies on imported products, the report stated. It also wants the removal of disproportionate import bans and expedited, more transparent, and less onerous customs, as well as a comprehensive single-window electronic certification process.