India FTA depends on opening farm sector: US

  • 15/05/2008

  • Economic Times (New Delhi)

The US on Wednesday said prospects of a free trade agreement with India are "too premature' as it depends on the opening of market for agricultural products, though progress has been made in manufacturing and services. "You can see some progress in manufacturing and services. But the true FTA would have to include agriculture. I think it is too premature,' US ambassador to India David Mulford said here. Currently, India is at an advance stage of negotiating a comprehensive economic cooperation agreement with the European Union. With US being its second-largest trading partner, there have been suggestions from sections of industry, both in the US and India, whether the two countries can open their markets to each other through an FTA. "The problem with the issue is that FTA, to be really effective would also have to include agriculture. That is an area that is not yet ready for free trade negotiations,' Mulford said.