EU MPs oppose corporate interference in FTA talks

As India plans to ink a free trade agreement (FTA) with the European Union (EU), 70 members of European parliament (MEPs) have joined hands to crusade against corporate dominance in EU trade policy.

The campaign aims to bring in transparency in trade policy matters, which currently seek to satisfy corporate interests. It is organised by the Alliance for Lobbying Transparency & Ethics Regulation and European Coalition for Corporate Justice, amongst others.

Experts say free trade with EU is characterised by uneven bargaining power and better market access to EU corporations, specially those engaged in the chemicals/pharmaceuticals, and food and drink industries.

David Martin, a MEP part of the campaign, says the EU should not push for provisions in bilateral talks that can impact local manufacturing in developing countries and go beyond what is mandated by the trade related aspects of intellectual property rights (Trips) agreement of the World Trade Organisation.
Provisions such as data exclusivity, which are part of FTA with India, can delay entry of generic medicines and have repercussions not just for India, but also countries to whom India supplies, says Martin.

The EU is also pressing for patent term extensions for drugs beyond 20 years, which India presently gives, thereby extending monopoly of drug makers and keep low cost generic drugs outside.

S Ganesan, chairman of the international treaties expert committee, says FTAs with India are initiated by “others with India”, rather than India with others. “India does not lead from the front, and the EU is known for hegemony.”

Corporate interests in rich countries is to try and secure funding either from their own governments as subsidies, or as price from the buyers in the poor countries, says Barun S Mitra, director, Liberty Institute, an independent think tank. Experts say the EU wants total elimination of customs duty on several agricultural products. This could have severe impact on India’s farming community as according to OECD data, agriculture support given by EU in 2008 was €102.9 billion.

Furthermore, the EU is pushing for India to join the International Union for the Protection of New Varieties of Plants-1991, which would turn Indian farmers into pawns of EU multinationals engaged in crop research, and crush farmers’ privileges of sharing, exchanging, selling seeds to other farmers.

Shalini Bhutani, regional programme officer-Asia, GRAIN, a non-profit organisation working to support small farmers, feels UPOV-91 will curtail natural rights of farming communities and make them subject to the economic rights of corporates.

Bhaskar Goswami from the Forum for Biotechnology and Food Security says provisions being institutionalised through FTAs have potential to undermine whatever little protection is available to the poor in India.