The EU's strict safety standards have significantly restricted Indian exports of chillies, tea, basmati rice, milk, poultry, beef, fish and chemicals.
Champion of the cause
India plans to defend this case jointly with South Africa, given the cooperation between Pretoria and New Delhi on various food safety issues on global platforms.
“It is a significant development and India will certainly challenge the stringent food safety standards imposed on Indian food products exported to European countries,” the first person said.
E-mailed questions to the Secretary of Commerce and the Ministry of Commerce spokesperson remained unanswered at the time of going to press.
“India should support South Africa on this issue as Indian exports to the EU are far below potential. Supporting South Africa could pave the way to addressing broader concerns about the EU's trade barriers affecting several exporting countries,” said Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI).
Unfair restriction?
“South Africa believes that EU phytosanitary regulations, in particular those concerning the False Codling Moth (an insect), unfairly restrict the import of South African citrus fruits. South Africa argues that the EU's requirements are stricter than necessary and are contrary to the World Trade Organization (WTO) international trade rules,” he said.
“South Africa is challenging the EU regulations because the citrus sector is important to the South African economy and these restrictions could limit their export potential. Furthermore, South Africa is likely to believe that the EU measures are stricter than what is scientifically necessary is to control the moth,” said Srivastava.
The development also comes against the backdrop of a dispute between India and Pakistan over the Geographical Indication (GI) registration of Basmati rice with the European Commission. Indian Basmati exports to the EU have increased steadily over the past three years. Pakistan's claim to obtain a GI tag for its Basmati rice has further strained relations between the two neighboring countries.
Rising exports
According to commerce ministry data, India's agricultural exports to European countries increased 18.65% to $3.70 billion in FY24 from $3.12 billion in FY23 and $2.94 billion in FY22.
Similarly, exports of all goods to Europe recorded a 1.5% increase to $98.88 billion in FY24, compared to $97.45 billion in FY23 and $85.20 billion in FY22.
In the field of fruits and vegetables, India exports grapes, pomegranates, mangoes, bananas, oranges, onions, mixed vegetables, potatoes, tomatoes and green chillies to European countries.
“India is closely monitoring the situation and will take action at the appropriate time. There are certainly some difficult issues associated with SPS measures that create roadblocks to the export of goods. These issues are being discussed and will be further deliberated upon during the 8th round of FTA negotiations due to start in May or early June,” one of the people mentioned above said.
European Commission Trade and Agriculture spokesperson Olof Gill said: “The EU has strict SPS import rules (including food safety standards) that must be respected by all countries exporting to the EU, as well as by EU producers. “
Standards present
“The food safety standards have been introduced to ensure a high level of SPS protection in the EU, that is to say to protect the safety of EU consumers and animal and plant production,” Gill added.
The EC spokesperson insisted that these rules are non-negotiable and will remain in force even after a free trade agreement (FTA) comes into force. In other words, the rules apply equally to imports from all countries, with or without a free trade agreement.
“In its request to the WTO, submitted on April 24, South Africa challenged the EU ban on the import of South African citrus fruits affected by the fungus 'citrus black spot', an official statement from the WTO said.
South Africa claims that the EU measure appears to violate several provisions of the WTO Agreement on Sanitary and Phytosanitary Measures (SPM).
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Published: May 5, 2024 5:25 PM IST