QCOs intent not to make it trade restrictive, but enhance quality ecosystem: Comm min official

The objective behind issuing quality control orders QCOs for a number of goods is not to create trade barriers, but to enhance quality ecosystem in India, a senior government official said on Thursday. About concerns regarding Indias QCOs from certain EU firms, Jain said technical barriers to trade chapter in the FTA cover technical regulations like these.

The objective behind issuing quality control orders (QCOs) for a number of goods is not to create trade barriers, but to enhance quality ecosystem in India, a senior government official said on Thursday. Speaking at an event on India-EU free trade agreement, India's chief negotiator for this FTA and Additional Secretary in the Department of Commerce Darpan Jain said the pact has tried to ensure that these regulations do not impede trade between India and the European Union (EU). About concerns regarding India's QCOs from certain EU firms, Jain said technical barriers to trade chapter in the FTA cover technical regulations like these. ''It (QCO) is a quality requirement based on safety, security and sustainability criteria -- either one or a combination thereof. There are a number of reforms which are happening on that, more and more products are being looked at as to how we can enhance the quality ecosystem in India... the intent is not to make it trade restrictive but (find ways) to enhance quality of products available in the Indian market, so that is the objective,'' he said. He added that the India-EU agreement is a living agreement as it includes clauses for a review and consultation processes. ''I think you should not feel worried about it, you should not have any apprehensions about it. It is something which is taken care of as far as India-EU trade is concerned,'' Jain said. He added that EU's CBAM (carbon border adjustment mechanism) was presented as something which was ''very very'' difficult. The Indian industry from certain sectors like steel, has raised concerns over CBAM. CBAM is the EU's border carbon tax that charges importers for emissions embedded in goods produced outside Europe. It effectively places a carbon price on foreign manufacturers selling into the EU. The mechanism acts as a climate-linked trade barrier on carbon-intensive imports. ''...but we have to find a way to address the concerns of the regulator while ensuring that trade is not restricted. So I think that's a tough balance to achieve and we are at that direction,'' he added.