The free trade agreement between India and the EU is unlikely to be concluded before next year, the EU Trade Commissioner, Mr Karel De Gucht, admitted on Monday.

His remarks followed Sunday's meeting of the EU Foreign Affairs Council in Brussels, where the matter of the FTA was discussed.

Mr De Gucht said he hoped that outstanding issues could be resolved by the time of the next India-EU summit in February. However, while the EU's determination to achieve a deal was as “strong as ever” he admitted that it was “not easy.” There had previously been hopes that the talks to agree an FTA – which began in 2007 – would be resolved this year.

“At a certain point negotiations require pragmatism,” he said.

Areas where there were still “substantial problems” included India's tariffs on the European wine and spirits industry, the services sector, as well as energy and public procurement, he said. When pressed about whether he believed these differences could be overcome, he said that he hoped that was the case. “I believe an agreement would be of the utmost importance – it will require more flexibility on both sides to get it.”

While NGOs have expressed concerns about the impact that changes to India's IP regulations could have on its generics drug industry, Mr De Gucht pledged there would be safeguards to ensure that it would not impact the delivery of vital medication. “There will be a clear provision that this will not hamper the delivery of life saving medicines to the third world,” he said.

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