Mumbai: Representatives of India and the European Union (EU) will meet this week in a bid to resolve differences over tariff and services that have slowed the progress on the proposed Trade and Investment Agreement (TIA).

Commerce minister Kamal Nath will meet EU trade commissioner Peter Mandelson in London later this week to give a push to negotiations on the agreement.

The negotiations, launched in June last year and slated for conclusion by the end of this year, was intended to give a major boost to trade ties between the two sides.

The decision to launch the agreement was taken at the India-EU summit in Finland in 2006.
 
Despite several rounds of negotiations, the two sides could make little progress owing to differences over issues like public procurement, opening up of service sector and tariff cuts on industrial goods.

EU officials said although progress has been slow they were in no rush to conclude an agreement without both sides getting the best in a deal.

"We would like to conclude the negotiations as quickly as possible. But for us substance is more important than speed. We will not sacrifice quality,'' said an EU official.

The EU wants 90 per cent of India's tariffs on industrial goods lifted in the next seven years and a change in Indian government's procurement policy as also greater market access for its non-agricultural products.

These are difficult propositions for India and New Delhi even refuses to talk about changes in procurement policy.

The EU has come up with a list of 226 products, mostly chemicals, petrochemicals, plastics, ceramic and glassware items on which it wants tariff lifted.

India, on the other hand, is yet to present a list of services and goods to be put in the negative list. The two sides are also yet to begin negotiation on the common agricultural policy (CAP).

Meanwhile, trade between India and the EU has doubled from $28 billion in 2003 to $55 billion in 2007. The EU is India's leading trade partner, and studies show bilateral trade could touch a whopping $572 billion.