NEW DELHI (AFP)--India and the European Union will focus on pushing for a free trade pact and narrowing differences over climate change at their annual summit this week, a European diplomat said Wednesday.
The two sides have held seven rounds of talks since 2007, and Daniele Smadja, the E.U.'s ambassador to India, said the leaders must now "bring political momentum into the discussions".
Among the hurdles faced by the planned pact are intellectual property rights disputes, high Indian taxes on wines and spirits from Europe, and E.U. concerns over child labor in India.
"We have to get into exchange of concessions, and these are difficult and need time," Smadja said.
Prime Minister Fredrik Reinfeldt of Sweden, which holds the rotating E.U. presidency, E.U. Commissioner for External Relations Benita Ferrero-Waldner and E.U. foreign policy chief Javier Solana will attend Friday's meeting.
The Indian side will be headed by Prime Minister Manmohan Singh.
The E.U. is India's largest trade partner with annual bilateral trade totaling around EUR77 billion ($113.7 billion). India ranks ninth behind South Korea in the E.U.'s list of major trading partners.
Besides trade, climate change will also be a priority with just weeks to go before the United Nations Climate Change meet in Copenhagen in December, Smadja said.
The E.U. has committed to reducing its emissions of harmful greenhouse gas by 20% from 1990 levels and has said it could increase the target to 30% if an international agreement was reached in Copenhagen.
New Delhi, however, is resisting any binding emission cuts and demanding finance and technology from rich countries to help reduce emissions.
(END) Dow Jones Newswires
November 04, 2009 05:47 ET (10:47 GMT)