By TIOL News Service

NEW DELHI, JAN 18, 2014: POLLS not only in India but also in the European Union likely to be a spoiler for the India-EU Free Trade Agreement. As per EU Ambassador Joao Cravinho, the proposed agreement may be inked by the year-end or next year.

The Ambassador has reportedly said, “Both the countries have come a long way and most of the issues have been addressed in the last seven years. However, there are some issues with regard to wine & spirits, automobiles and car parts, services and to lesser degree to (government) procurement.”

If one goes by the popular saying in India, the proposed FTA has literally become 'Birbal ki khichari'! The proposal was first mooted way back in 2007, and both the parties have held dozens of rounds of talks in India and Europe but consensus always eluded both the sides because of new issues intermittantly delaying the decisions.

Some of the key issues which appear to be holding back the agreement are import duty on wine and liquor, IPR, procurement by Govt agencies from domestic companies, liberalisation of banking and insurance etc. There are a few irritants for the investment part of the agreement as well.

Reacting to the delay Mr Cravinho has said, “We are too close not to achieve the final agreement. The European Commission is going to witness elections around the same time as in India in May. Therefore, we are not expecting the deal to be inked before that.”

Experts also speculate in India that the FTA that the EU is negotiating with the USA may further delay the agreement with India.