India’s Commerce Minister Piyush Goyal has reiterated the protection of the dairy sector in Free Trade Agreements (FTAs), emphasizing the sector’s sensitivity and the livelihoods of small farmers. Despite ongoing negotiations with Australia and recent agreements, no duty concessions for dairy will be offered.
In India, Commerce and Industry Minister Piyush Goyal affirmed that the dairy sector will remain protected in Free Trade Agreements (FTAs) due to its sensitivity and the livelihood issues of small farmers. He emphasized that there are no plans to offer duty concessions in this area, even under recent trade agreements, including the European Free Trade Association (EFTA) pact signed with Switzerland and Norway.
During a joint press conference in Adelaide, where Goyal is engaged in bilateral talks to enhance trade and investments with Australia, he highlighted that India has consistently refrained from providing duty concessions in the dairy sector. He pointed out the significant disparity between Indian and Australian dairy farms, with Indian farmers typically operating small holdings of 2-3 acres with 3-4 livestock, while Australian farms are much larger and better equipped for competition on equal terms.
Goyal reiterated that the dairy sector is open for trade, but customs duties remain in place. He confirmed that there has been no opening of the dairy sector in negotiations with Europe, Switzerland, or Norway, stressing that the recent EFTA agreement did not include any dairy components.
In response to queries regarding the agricultural sector, Australian Trade and Tourism Minister Don Farrell mentioned that Australia is seeking duty reductions for commodities like chickpeas, pistachios, and apples. He noted that some challenging issues have been set aside in negotiations.
India and Australia implemented an interim trade agreement in December 2022 and are currently negotiating a comprehensive economic cooperation agreement to expand their trade relations. However, bilateral trade between the two countries declined to $24 billion in the 2023-24 fiscal year from $26 billion in the previous year, with a trade imbalance favoring Australia. India’s exports totaled $7.94 billion, while imports from Australia reached $16.15 billion.
Goyal also announced the opening of an Invest India office in Sydney to bolster bilateral investments. He highlighted the vast investment opportunities in India, citing its advantages of democracy, demographic dividend, demand, and decisive leadership. The two nations aim to double their bilateral trade to $100 billion in the coming years.
