Ramesh bypasses boss, tells PM to reconsider clauses in FTA with ASEAN
Indian Express, India
Ramesh bypasses boss, tells PM to reconsider clauses in FTA with ASEAN
By Shishir Gupta
4 May 2007
NEW DELHI, MAY 3: Two days after Panchayati Raj Minister Mani Shankar Aiyar had a dig at the Prime Minister over economic reforms and 9.2 per cent growth at a CII meeting, Minister of State for Commerce Jairam Ramesh has cautioned Manmohan Singh over parts of the proposed free trade agreement (FTA) with the ASEAN group.
Bypassing his boss Kamal Nath, Ramesh wrote a one-page letter directly to Singh on April 6, asking the PM to “reconsider” the proposed reduction of tariff to 50 per cent for five agricultural products - tea, coffee, crude and refined edible oil and pepper - under the FTA with ASEAN.
Acknowledging the receipt of the letter, the Prime Minister’s Office has referred the letter back to the Commerce Ministry for comments.
Last year, Ramesh had publicly trashed India-Brazil economic cooperation on the eve of the IBSA summit on September 12 in Brazil. In an interview to a Brazilian newspaper, Ramesh said that India and Brazil were trade competitors and not natural allies.
According to government sources, Ramesh has said that the proposed phased reduction of tariff to 50 per cent in these five products by 2018 will hurt farmers.
While there is 100 per cent tariff on tea and coffee, edible oil (crude or refined) already attract a tariff of 50 per cent. There is 70 per cent tariff on pepper.
The India-ASEAN trade agreement is under negotiation and is expected to become effective from January 1, 2008. The next joint secretary-level negotiations are scheduled for May 8-10.
Ramesh’s letter follows a similar letter written by Sonia Gandhi to the PM on April 11 last year on the same subject. While Gandhi brought her concerns over the FTA with ASEAN to Nath’s notice, Ramesh chose to ignore him.
