Hope for early resumption of India-EU FTA talks: Germany

Germany, a key member of the European Union, today hoped that the stalled talks between India and the 28-member grouping on the long-awaited Free Trade Agreement will resume soon to thrash out sticky issues.
India had last month deferred talks with the EU on the proposed FTA after it banned around 700 generic drugs clinically tested by Hyderabad-based GVK Biosciences.
"I am very hopeful that talks on the FTA will be taken up very soon," newly-appointed German Ambassador Martin Ney said.
Noting that FTA will be beneficial for both the EU and India, he said it will help the latter attract foreign investments.

India-EU trade talks, which were launched in June 2007, remain stuck as both sides are not satisfied with each other's offers.
After a gap of about two years, Chief negotiators of India and the European Union were expected to resume talks on August 28 here, but New Delhi deferred it after EU's ban on GVK Biosciences-tested 700 generic drugs.

In May, 2013, both sides failed to bridge substantial gaps on crucial issues, including data security status for IT sector.
Launched in June 2007, negotiations for the proposed FTA have witnessed many hurdles as both sides have major differences on crucial issues including those related to tariffs and movement of professionals but the EU has shown an inclination to restart talks.

Besides demanding significant duty cuts in automobiles, the EU wants tax reduction on wines, spirits and dairy products, and a strong intellectual property rights regime.
On the other hand, India is asking for granting 'data secure nation' status to it by the EU. The country is among nations not considered data secure by the grouping.
The matter is crucial as it will have a bearing on Indian IT companies wanting market access.
The EU law mandates that European nations doing outsourcing business with countries that are not certified as data secure have to follow stringent contractual obligations which increases operating costs and affects competitiveness.