The Indian request to the European Union to sign a trade agreement is in a diplomatic hitch over the label Basmati. India has also taken seven years to have its Geographical Indication (GI) application recognized by the EU in an effort to have an exclusive right to use Basmati. Pakistan has filed a competing claim which encompasses portions of Pakistan administered Kashmir-territory that is contested by India.
Brussels is walking a thin line in New Delhi because EU officials are in a dilemma on whether to make a decision or not risking the rekindling of a bilateral conflict. The result will redefine the dynamics of exports between the two countries.