Context: India and the European Union (EU) are negotiating a Free Trade Agreement. The progress is stalled due to disagreements over food safety norms under Sanitary and Phytosanitary (SPS) measures.
Relevance of the Topic: Prelims: About Sanitary and Phytosanitary (SPS) Measures; EU-India FTAMains: India - EU relations.
India-EU Trade and Investment Agreement
- India and the European Union (EU) are negotiating a comprehensive Free Trade Agreement (FTA), officially known as the India-EU Trade and Investment Agreement.
- Despite 12 rounds of talks, key differences over Sanitary and Phytosanitary (SPS) continue to hinder progress.
Sanitary and Phytosanitary (SPS) Measures:
- The Agreement on the Applications of Sanitary and Phytosanitary (SPS) Measures came into force on 1 January 1995 with the establishment of World Trade Organisation (WTO). It set out the basic rules for food safety and animal and plant health standards.
- The Agreement allows countries to set their own standards. However, the regulations must be based on science.
- They should be applied only to the extent necessary to protect human, animal or plant life or health.
- They should not arbitrarily or unjustifiably discriminate between countries where identical or similar conditions prevail.
Countries can set higher standards based on appropriate assessment of risks so long as the approach is consistent, not arbitrary.
Indian Concerns
- EU’s Sanitary and Phytosanitary (SPS) exceed global norms, often being stricter than WHO Codex guidelines.
- The EU regularly rejects Indian shipments citing differences in standards, including restrictions on the use of methyl bromide fumigation for certain plant products.
- As per the Economic Advisory Council to the Prime Minister (EAC-PM) report in 2022, the EU enforces stringent aflatoxin limits. E.g.,
- For direct human consumption, the EU permits a maximum of 2 µg/kg for aflatoxin B1 and 4 µg/kg for total aflatoxins.
- Codex Alimentarius (International food standards body under WHO) has set a more lenient general limit of 15 µg/kg (or 15 parts per billion) for total aflatoxins in peanuts, meant for human consumption.
- This divergence in standards often leads to trade disruptions and additional compliance burdens for Indian exporters targeting the EU market.
India - EU Trade
- EU is India’s largest and most premium export destination for agricultural items, particularly coffee, tea, spices and rice.
- However, India’s exports to the EU have seen limited growth over the years, rising from $3.02 billion in FY19 to $4.54 billion in FY25, largely due to the stringent standards imposed by the EU on foreign agricultural products.
Aflatoxins:
- Aflatoxins are a group of poisonous carcinogens and mutagens produced by certain moulds (fungi), particularly Aspergillus species, that grow on various food crops and agricultural commodities.
- The toxins are commonly found on agricultural crops such as peanuts, maize (corn), rice and tree nuts, especially in warm and humid climates.
- When consumed, they can have severe health implications including acute toxicity, liver cancer, immune system suppression and growth impairments.
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