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Citizen News Service - CNS - Free Trade Agreements (FTAs) - A Threat To People's Freedoms
Citizen News Service - CNS - Free Trade Agreements (FTAs) - A Threat To People's Freedoms
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Free Trade Agreements (FTAs): A Threat To
People's Freedoms
The year 2011 has seen the most significant
attempts to revive the World Trade
Organization (WTO) in recent times, with
the stated objective of member countries to
conclude the Doha round before the end of
the year. At this juncture, developing
countries like India need to take stock of the
situation so that key concerns are taken
into account. It is assumed that free trade
and the removal of regulations on investment
will result in economic growth, reducing poverty and generating employment
opportunities. However, past evidences show that these kinds of agreements allow
transnational corporations more freedom to exploit workers rather than help them.
By removing all restrictions on businesses, it severely affects the lives of the
common people.
The European Commission is currently negotiating a free trade agreement (FTA)
with India and
several rounds of negotiations have already been held.
In a statement issued after the conclusion of her recent visit to India in the second
week of April, 2011, Ska Keller, a Green member of the European Parliament,
warned that the proposed free trade agreement (FTA) between India and European
Union will have serious consequences for the Indian people.
According to her, FTA is a threat to poverty eradication and development of the
Indian people, as regulations on intellectual property rights might endanger the
production of generics and thereby block the access to medical treatment for
millions of poor people in India and other countries.
I therefore support the campaign Hands off our medicine of Mdecins Sans
Frontires or MSF (doctors without borders) Europe! I am also concerned that
Indian farmers could stand affected negatively. Moreover, there are severe concerns
that the deal with the EU could force small shops to close or wholesome industries
to close down due to competition from Europe, she added.
She also feels that any so called benefits of the FTA cannot be foreseen yet. Only
one of the Indian partners stated at all which advantages India hopes to achieve
from the FTA: more liberal visa regulation and technology transfer. But it is doubtful
whether these advantages will be achieved as firstly it is the member states, and
not the European Commission, to decide about visa regulations. Secondly,
technology transfer can only happen, if European companies produce and apply
their technologies in India and even if they did, small enterprises would not benefit.
Similar concerns were voiced by U.K. based Madi Sharma, a member of the
European Economic and Social Committee (EESC). She called for the suspension
of the negotiations until studies had been carried out to assess the likely economic
and social risks of the FTA on Indian society. Until now, the talks have been
guided by a study that fails to take the FTAs impact on the informal sector into
account even though over 90 per cent of the Indian economy is informal, up of
people like street vendors and domestic workers, she said in a statement.
According to a Joint statement of seed solidarity between European and Indian
people issued during the International Days of Action in Brussels , recently (on 18th
April): Free trade would make seed slaves and would have devastating
consequences on small farmers and seed growers. In its FTA talks, the EU
demands a range of commitments like market access for EU agricultural products,
and IPR (Intellectual Property Rights) protection in the form of patents / data
exclusivity for its agri- chemicals industry. The investor protections sought by EU
through the proposed FTA, will mean priority access over land and water being
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