Kozhikode, Thursday, August 13, 2009: Chief Minister VS Achuthanandan today once again slammed the UPA government for not keeping its words regarding the ASEAN trade pact. Inaugurating the KUWJ state committee here VS Achuthanandan said, the state has still not received the draft copy of the deal, which the center promised to give before the deal was signed. Chief Minister alleged that, the deal is being signed without clearing the qualms of the state.

Earlier, Prime Minister Manmohan Singh had assured the Kerala leaders that, there are enough safeguards in the agreement to protect the interests of Indian farmers, fishermen and others. Besides, a committee of ministers will make suggestions for strengthening the domestic sectors.

Prime Minister said, the negotiations on the FTA dragged on for many years in order to put in place provisions, which would prevent the country from being flooded with imports harmful to India’s interests. There are 489 items on the negative list, for which there will be no duty cuts. There are a number of items on the Highly Sensitive List, which will invite modest tariff reductions for 10 years.

The period gives enough time to improve the productivity, quality and price competitiveness of Indian products. The prospect of competition in future should become an incentive to improve the performance of the country’s traditional sectors, which now suffer from inefficient practices, outdated procedures and other problems.

The FTA should be taken as an opportunity to cut costs and make the domestic sector healthier. It is unwise to erect protectionist walls when trade and economic growth thrive only across open borders.