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Free-Trade Agreement with European Union: India May Relax Tariffs on Spirits, Auto Parts

(Dilasha Seth – Economic Times)

India is likely to take a “flexible approach” on tariffs on wines and spirits, as well as on auto components in the free-trade agreement negotiations with the European Union, marking a shift from the hard stance it adopted until the talks broke down two years ago.

The 28-nation bloc is keen to restart talks on the comprehensive free trade agreement (FTA).

Negotiations on the FTA, which began in 2007, came to halt after the April 2013 talks ran into a deadlock. India feels it is in a stronger negotiating position after the Parliament approved raising the foreign investment cap in the insurance sector to 49% from 26%, a key demand of the EU.

“The individual member-countries have asked the commerce and industry minister to restart talks on FTA, but we are still waiting for a formal proposal from their side,” said a government official. Click here to read more.