The European Parliament has overwhelmingly approved a report by Sajjad Karim MEP, Liberal Democrat International Trade Spokesman, on EU-India trade and economic relations. The report calls on the EU and India to demonstrate the political will to build an effective partnership and the EU to enter into a Free Trade Agreement (FTA), with India. The report also calls on both sides to achieve common ambitions in the areas that will dictate the terms of the 21st Century: protection of intellectual property rights, open markets for services and investment and effective trade defence mechanisms.

Commenting, Mr Karim said: "I am delighted this Liberal Democrat report has been endorsed across the European political spectrum. I am particularly pleased my British Labour and Conservative colleagues are following my lead and supporting the call for an EU-India Free Trade Agreement."

"With the full backing of the Commission, this report is an essential building block of the EU's external policy review and provides a real platform for the EU-India Summit. Europe will never now grow as fast as India or China, but Asia's boom need not be the EU's bust."

"Protective forces in the Council have forced the EU to be too introspective, allowing our competitors to pass us by. Only through clinching strategic partnerships with new areas of growth in Asia, will the EU secure open markets, fairer trading conditions and growth and prosperity for Europe in the 21st Century."

“A successful Doha Round is the most effective way of ensuring increased global liberalisation, but it does not rule out an FTA with India, which goes above and beyond what a lowest common denominator WTO deal could now provide.

“Other regional organisations, like the Association of South East Asian Nations, (ASEAN), have been quick to move to "Plan B" and court India as a response to Doha disappointment, whilst the EU has had its head in the sand", concluded Karim.