In recent FTAs, including with the EU, India has given up its reluctance to lower tariffs for automobiles, wine and, even for some fruits such as apples and pears. Since you are negotiating several deals, and will come across what have traditionally been no-go areas, what will be your strategy for calibrated opening up?This is a defining moment in India’s journey towards ‘Viksit Bharat’. No country has become a developed nation living in isolation; it is through working with other countries, expanding markets, working on quality standards that investments flow. It was the silly myopic thinking that Congress-led UPA had, which we have done away with. EU FTA talks began 20 years ago, but they failed to do it for reasons best known to them, missing an opportunity that would have created lakhs of jobs, earned us billions of dollars, and helped in our country’s prosperity.
Because of their wrong policies. Instead of deals with developed nations, which would have been a win-win for us, they landed us up with agreements with our competitors, which are hurting the economy. They even threw us under the bus by negotiating with Regional Comprehensive Economic Partnership. We had FTA with Asean countries, Japan and South Korea, and we were negotiating with Australia and New Zealand. RCEP would have been an FTA between India and China. Just imagine what would have happened to India’s growth story if that had happened. The 27 EU nations represent a huge market, which is now opening up for us, and we’ve been able to do that without compromising on anything. The reluctance was misplaced. You spoke of apples. We import six lakh tonnes of apples, and over 50,000 tonnes from the EU. We have given them a quota on apples with a minimum import price of Rs 80 a kg, and along with 20% duty or Rs 16, it will be Rs 96. Current protection for growers is Rs 50 MIP and 50% duty, which is Rs 25. The quota is less than what we are importing. We have protected our interests in automobiles. Due to UPA’s stand, consumers were not getting a choice, we lost investments, which could have come to India for manufacturing. We have protected cars of up to Rs 25-30 lakh price, and the quotas are spread over 14 years. So, this reluctance was wrong. What we have done is a balanced, calibrated approach in every sector. This is a flawless deal.Will you have a similar strategy for other FTAs?Every agreement stands on its own legs. We will negotiate and finalise every agreement based on what is good for India, create a win-win situation for India, create new job opportunities for Indians and create new business investment for Indians.Which will be the no-go areas? Cereals, pulses, genetically modified food, dairy, are all out?Across FTAs that is going to be our strategy – To get the best deal with every country that we negotiate.Are you hopeful that CBAM won’t be detrimental to us?It is applicable to all. We have got a forward most-favoured nation status. If they give any concessions, it’s for all. There’s already a Draghi report (a panel led by former Italian PM). It is talking of simplification and deregulation. We have protected our interests and ensured that verifiers will be approved in India and taxes paid in India will be recognised by Europe.How confident are you of the deal going through European Council without any difficulty?Every country in Europe has welcomed it.Will it need to be ratified by every EU member nation?No, it does not have to.India has offered concessions to British and European automobiles. Have Japan and Korea come forward and dropped their reluctance for a review of their FTAs and what is the progress on the Asean review?With Japan and South Korea, we have not had any discussions on automobiles at all. With Korea, the review process has started, but because of frequent changes of govts there, it is a little slow. Asean review has started and it’s progressing well.In last eight months, this is the fourth negotiation that you’ve wrapped up. How much of speed would you attribute to change in the global landscape in this period, prompting countries to engage more?Everybody looks at their interests. If their interests are being served, they want to engage with India. I have been seeing this trend for past 3-4 years.Europe is now fully covered through India’s three FTAs and you’re in talks with Canada, Mexico for a preferential trade agreement, Chile and Mercosur, apart from the US. How soon will you have agreements covering North and South?Whenever we get a good deal, which is in national interest, we’ll conclude. We are open to negotiating with all economies that believe in fair trade and fair play, don’t hurt India’s interests, and respect our sensitivities. We will move ahead wherever India gets a geopolitical, strategic and business advantage.It’s almost 12 months since talks with the US began. Is there disappointment at the pace and the kind of actions taken by the US?Not at all. Every country looks after its own interests. We have to protect ours.How soon will the reconciliation happen?Negotiations continue in a friendly manner.There are certain sectors such as textiles and leather, which have seen some slowdown. Is there need for some support for them?We are open to that. But as things stand, most of them are looking at alternative markets.It will take time for the four trade deals that have been announced to be ratified. How will exporters navigate this phase?These aren’t the only markets and even with duties, many of these markets have opportunities. Many businessmen have already started factoring those in. By the time they do the groundwork, the agreements will start falling into place.You proposed a review of SEZ regulations. How far has that progressed?We are engaged in discussions to find the right balance to make sure the domestic industry doesn’t get hurt.With trade deals do you see India becoming a hub for exports, as a bridge between countries?An FTA is not just about tariffs. It is about predictability and certainty. It gives confidence to investors that if they invest in a country, their business will not get adversely affected by any change of policy. Therefore, every FTA leads to an increase in investment. A few months ago, a leading German firm got land in Dahej (Gujarat) within a space of days and is investing $1.5 billion. I had suggested to the CEO that the firm should hold a board meeting here, and they, I am pleased to tell you, held their first meeting here, their first outside Germany. I met them and was told that they are now setting up a large GCC for R&D in Hyderabad and also looking for land near a port for a chemical zone. This is the kind of opportunity that we can offer now, and there is enormous potential.Congress’ Jairam Ramesh raised concerns over EU deal, including IPR.Some anti-development politicians during their tenure as ministers failed India. There used to be so much difficulty in getting environmental approval during UPA. Either you paid an environment levy or you didn’t get approvals. It is, to say the least, hilarious to see such people making these comments. I can assure you that the IPR chapter is a very robust chapter. It is aligned to our commitments under TRIPS. We have IPR chapters in the agreements with Switzerland and the UK, and everybody has seen those chapters. Nobody has ever found a single fault.