Farm and Trade Unions Urge PM Modi to Halt US Free Trade Deal Negotiations
Several organisations representing farmers, fish workers, poultry traders, winemakers, and trade unions have written to Prime Minister Narendra Modi, demanding an immediate halt to negotiations for a free trade agreement (FTA) with the United States. In their letter, the groups argue that the proposed deal threatens the interests of workers and peasants in India.
The signatories include the Rashtriya Kisan Mazdoor Mahasangh, Bharatiya Kisan Union (Asli), Farmers Coordination Committee, Punjab Kissan Mazdoor Union, Poultry Association, Kisan Mazdoor Mahasangh, and the Hind Mazdoor Sangh, among others. They have called for the suspension of all ongoing FTA negotiations and a comprehensive review of existing FTAs by Parliament and the public.
The organisations have demanded full transparency in trade talks and protection for India's agriculture, retail trade, workers, and rural economy from what they describe as 'corporate-driven' trade deals. Citing reports that India is close to concluding an interim trade deal that could evolve into a comprehensive FTA covering all sectors, the letter urges the government to safeguard farmers, workers, retail traders, rural livelihoods, food sovereignty, and the national economy.
The letter points to past policy decisions taken under U.S. pressure that it claims have negatively affected India, including reduced crude oil imports from Russia leading to higher oil prices and inflation, and the cancellation of the India-Russia fifth-generation fighter jet programme in 2018, which weakened defence capabilities.
On agricultural imports, the organisations argue that allowing 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 states. It also notes that imports of maize, cattle and poultry feed, edible oils, and soybean products have already harmed domestic production of coconut, groundnut, mustard, and other oilseeds.
The letter further warns that 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 organisations say.
The demand for suspending FTA negotiations reflects concerns among certain sections of Indian agriculture and labour about the potential impact of trade liberalisation with the United States. The government has not yet responded to the letter.
