Though European Union (EU) is still insisting on hike in FDI cap in the insurance sector and a strong intellectual property regime to ink foreign trade agreement (FTA) with India Italian Trade Commissioner wants it to conclude before the general elections in India next year.
"It is our aim is to sign FTA before general elections in India," Italian Trade Commissioner Amedeo Scarpa told The Pioneer. He said "As far as I know there have been important meetings between EU and India two weeks ago, they have discussed FDI cap in insurance, agriculture and a strong intellectual property regime."
However, he refused to answer when asked about FTA will be possible if Indian Government doesn't provide any commitment on the 49 per cent FDI in the insurance sector.
India and the EU, which are negotiating a free trade pact since 2007, have yet to reach a consensus on vexed issues. While the 27-nation bloc is pressing hard for significant duty cut in automobile sector in the proposed Broad based Trade and Investment Agreement (BTIA), Indian industry is strongly opposed to such a move.
India is seeking a good package on services including cross border flow of IT and ITeS, movement of Indian professionals and grant of data secure status.
The negotiators of India and European Union (EU) are likely to meet on May 15 here in a bid to resolve contentious issues creating a road-block in inking of the FTA, ahead of their ministers meeting in June.
Besides hike in FDI cap in the insurance sector and a strong intellectual property regime EU is pressing for duty cuts in wines and spirits and dairy products, hike. On the other hand, India wants liberalised visa norms for its professionals, data secure status and market access in services and pharmaceuticals sector.
The total trade between India and the EU stood at $94.43 billion during April-February 2012-13. It aggregated to $109.86 billion in 2011-12.