“Sour Grapes”: Piyush Goyal Strongly Rebuts Congress Criticism of India-EU FTA

New Delhi: Union Commerce and Industry Minister Piyush Goyal has robustly countered allegations made by Congress leader Jairam Ramesh regarding the recently concluded India-European Union Free Trade Agreement (FTA). Goyal dismissed Ramesh’s claims as a “sour grapes” narrative, asserting that those who failed to deliver while in power are now claiming credit for inaction.

Goyal highlighted that the prolonged delay in FTA negotiations between 2013 and 2022 had cost India dearly in terms of jobs, income, and economic growth. He described the agreement as a historic, mutually beneficial deal that opens up substantial opportunities for employment and development in India.

What Jairam Ramesh Criticized

Ramesh had posted on X that the FTA had been “overhyped,” raising concerns over:

• Trade deficits
• Carbon Border Adjustment Mechanism (CBAM)
• Automobiles
• Intellectual property rights
• Export of refined fuels

He argued that the deal represents the largest market opening India has ever granted, with tariffs reduced on over 96% of imports from the EU, warning that this could double imports and increase India’s trade deficit.

Goyal’s Rebuttal

Goyal countered that the criticisms were politically motivated and far removed from economic reality. He emphasized that sensitive issues like CBAM and others were actively negotiated and solutions were being explored through dialogue rather than confrontation.

Speaking on the global significance of the deal, Goyal said:
“When the world calls it the ‘mother of all deals,’ it cannot be dismissed as overhyped. The combined $25 trillion GDP, $11 trillion in global trade, and a shared market of nearly two billion people cannot be ignored.”

18 Years in the Making

India and the EU first began FTA talks in 2007, completing 16 rounds of negotiations. However, talks were stalled in 2013 over unresolved issues. The negotiations resumed in June 2022, and the agreement was finalized this week, marking a significant achievement 18 years after the talks began.

The FTA is expected to provide India with greater market access, enhance trade and investment, and strengthen bilateral economic ties with the EU.