The European Union is seeking zero-duty import of automobiles, as part of a trade agreement with India. The Indian government has dismissed this demand. In addition the 28-member grouping wants further customs duty removal for 29 auto components, again a no-go area given domestic sensitivities.
Sources said EU has shown little interest in going ahead with signing a deal and is now reopening settled issues in what many see as an attempt to delay the agreement that has been under negotiation for over seven years now.
The EU may review its offer for concessions for chemicals exports from India, arguing that New Delhi is not opening up its market sufficiently by reducing or removing import levies.