With India ?not willing to lower tariff for European goods entering the country?, the proposed free trade agreement (FTA) between India and the European Union (EU) is unlikely to be signed soon.

This was stated by Germany?s Head of Foreign Trade Division Berend Diekmann on Wednesday. He also said “little progress” had been made to conclude the agreement. This is in contrast to the optimism shown by Indian commerce minister Anand Sharma last month when he said that India was looking to conclude the proposed agreement this year as the negotiations were in an advanced stage.

The India-EU summit is scheduled to be held in February 2012 in New Delhi.?

Diekmann said the Indian government was not ready to open up the market to the EU and bring down tariffs on automobiles and other major products. Both sides are at variance over how and how fast would be the tariff reductions on automobiles, pharmaceuticals, chemicals, machinery products, procurement policy, agriculture and wines and spirits.

?The proposals on the table at present are not very attractive and a lot more will need to be done to work out a satisfying situation for both sides. At present, progress in talks has not been satisfying at all. We are not hopeful of signing the FTA anywhere in the near future,?? he said.

According to him, India had agreed to bring down tariffs

on high-end automobiles from the present 60% to 30% and further to 20% after five years. Similarly, for small cars it had proposed bringing down tariffs to 50% from the present 60% and

to 40% after five years. However, it was not acceptable to the EU negotiators who want drastic cuts in tariffs on automobiles and wines and spirits.

On the other hand, India has been asking the EU to allow free movement of professionals within the 27-nation bloc.

The free trade pact would involve slashing of duties on over 90 per cent of the trade and opening up of the markets for services and investment. The India-EU trade stood at $75 billion in 2009-10.

India has already implemented comprehensive free trade agreements with countries like Japan, Malaysia and South Korea.