The EU's trade negotiations with India face hurdles due to a dispute over trademark protection for basmati rice. This issue, rooted in a long-standing economic conflict between India and Pakistan, could lead to tensions between the EU and Pakistan if India's demands are met.
Basmati Rice Dispute Stalls EU-India Trade Agreement
Basmati Rice Dispute Stalls EU-India Trade Agreement
The issue of trademark protection for basmati rice is hindering a trade agreement between the EU and India, reports the Financial Times.
At its core, this is a prolonged economic dispute between India and Pakistan—the two largest producers of the crop—where both parties seek exclusive rights to use the name basmati rice, allowing them to charge premium prices for their rice.
EU negotiators in New Delhi, working to secure a trade deal, are currently facing pressure from the Indian government, sources tell the Financial Times. However, if the EU were to agree to India's demands, it would spark a conflict between the EU and Pakistan.
"Brussels is now trying to buy more time," a source told the newspaper.
The issue is linked to the disputed region of Kashmir, which has been a territorial conflict between Pakistan and India since 1947.