By Martin Banks - 8th February 2012
The agreement has the potential to boost growth in the EU
Sajjad Karim
A key EU-India summit this week is designed to give "added impetus" to a free trade agreement between the two sides.
However, a senior EU diplomat said it will be "impossible" to conclude a deal at the summit in New Delhi on Friday.
Consultations at the summit, attended by commission president José Manuel Barroso and European council president Herman Van Rompuy, will focus on the FTA.
Trade between the two sides has soared in recent years and India ranked eighth in the list of the EU's main trading partners in 2010, up from 15th in 2002.
Another EU source said that the main sticking points to a deal included trade tariffs on cars, wines and spirits and services.
"It will not be possible to close all the remaining chapters by Friday but, hopefully, the summit will give a positive signal so that this can be concluded in the coming months."
Meanwhile, UK Conservative deputy Sajjad Karim MEP is calling for a "level playing field" in the EU-India free trade agreement.
Current proposals would allow Indian car manufacturers duty free access to the EU, however European car manufacturers would be hit with a 30 per cent tariff.
He said, "The EU-India free trade agreement is one of the biggest and most ambitious free trade agreements being negotiated.
"The agreement has the potential to boost growth in the EU and allow European businesses access to a huge market. However we need to get it right."
Karim, who was parliament's rapporteur for the EU-India free trade talks, also spoke of the benefits of trade between EU and India.
