Germany’s new ambassador to India has said that he expects the stalled India-European Union free trade agreement talks will resume soon.

The protection of intellectual property rights by India is key to the negotiations, published reports indicate.

Last month India cancelled a meeting with the EU’s trade negotiators to protest the ban on 700 of its generic drugs due to allegedly questionable clinical trials.

The India-EU negotiations have been beset by difficulties since negotiations started in 2007. Among the other deal breakers have been differences over access for Indian professionals to the EU labor market, and taxes imposed by India on liquor and car imports from Europe.

“I am very hopeful that the talks on the FTA will be taken up very soon,” Martin Ney, the new German ambassador to India was quoted as saying, according to published reports.

Ney added that what India loses in terms of economic protection, it will more than gain in greater competitiveness and boosts in foreign investments.

“If you weigh these pros and cons, not only in the long term, but also in the mid-term, I think the pros are much more in the forefront,” said Ney.

Ney went on to say that the resolution of intellectual property rights are important for India to attract more foreign investment.

“Intellectual property rights is an important element for investors to come and engage long term,” he said.