MUMBAI: The Free Trade Agreement between India and the European Union is expected to materialise next year once the country finalises its new foreign trade policy, a top official has said.
"We are actually not very far from the agreement but we are not there yet. I am quite positive that next year or so it would be possible to finalise the free trade agreement," EU Ambassador Joao Cravinho told.
He said parties on both the sides are engaged in good political conversations and there has been a commitment from both the sides on finalising the FTA.
However, this is yet to be translated into actual progress in negotiations, Cravinho said on the sidelines of the 22nd annual general meeting of the Council of EU Chambers of Commerce here over the weekend.
"The Indian government has been a little slow; slower than we wanted to, in producing the new trade policy," the envoy said, but added that as the trade agreements last for as long as 15-20 years, a delay of a few months in policy formulation is not relevant.
Commerce and Industry Minister Nirmala Sitharman had in September said that the new five-year FTP would be different from the previous ones and hopefully announced soon. The policy is expected only from April next.
Earlier, the government had planned to introduce a new FTP immediately after the Budget in July but it has been delayed reportedly on account of some tax related issues between certain ministries.
"We expect that in the new year we will see a new trade policy. Once that happens, we will be able to sit down again and resume our negotiations," Cravinho added.
The EU is open for an asymmetrical agreement, he said, adding, however, that both sides must be agreeable for a little bit of give and take.
He pointed to the difference in taxation on cars imports from Europe as opposed to cars being exported.
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European Union hopes to seal free trade pact with India next year