Controversy over ASEAN FTA - Kerala hurt !

Kerala CM warned that more than 1 million workers in the fisheries sector will be adversely affected, if the ASEAN pact( ASEAN FTA ) is implemented.

He had written to the PM on Jul 27 about his concern on liberalisation in rubber, tea, coffee, rubber, fishery products, pepper, edible oils and other commodities on the ground that it could lead to a crash in prices of these commodities, jeopardising the livelihood of millions of cash crop farmers in the state. He had voiced concern about the lack of protection of negative list, as was envisaged earlier.

Truth is there there is a 489 items negative list, whose duties will be left untouched. Coconuts fall into this negative list.

Voicing fears that it will hit the tea, coffee, seafood, coconuts, rubber industries, V S said that the ASEAN pact will adversely affect Kerala economy.

The Centre maintains that it is ignorance, as micro losses have to be there for macro gains. The people belonging to Malaysia, Singapore, Thailand, Philippines etc have better per capita income than Indians and India will get access to their markets !

The Indian PM says that Indo-ASEAN trade is at $34 b and it will grow exponentially and that INDO-ASEAN FTA is better than China-ASEAN FTA.

China-Asean bilateral trade is at a whopping $171. The Indian PM hopes that India will do well in this Free Trade Agreement

Kerala economic experts opine that low quality fish will be imported, which will be mixed with high quality Kerala fish and exported from Kerala. The foreign countries will reject this seafood and thus Kera’la’s seafood industry will be affected ! So also with other industries.

The stock markets are up. Jupiter moved over from Aquarius to Capricorn today and till Dec 19, when he leaves Capricorn for Aquarius, there will be problems in the economic sector.

Poor monsoon has taken its toll of the economy. Agri growth will be stunted. Many job losses has been reported in the IT sector. Industrial growth also will not be upto the mark !