An interesting document highlighten the difficulties of a FTA, in this case between the EU and India, and why negotiations have stopped in 2008.
4.2 Challenges to Liberalization of Trade in Services
4.2.1 Non-harmonised EU market
India wants broad-based commitments from the EU in services, especially with respect to temporary
movement of people or Mode 4. However, unlike goods, the EU does not have a single market for
services and most of the issues related to the movement of people such as work permits and visas are at
the Member State level. Regulations and conditions differ across the Member States. Member States
have residency and nationality requirements and economic needs tests for foreign investments as well
as professional movement. Lack of harmonisation of qualifications and professional standards have
made it difficult for Indian professionals to service the EU markets. In an attempt to harmonise the EU
labour market, the Blue Card Directive was introduced in 2009. However, this Directive has limitations as
each Member State will continue to maintain the right to determine the number of immigrant workers
that can be admitted into the domestic labour market through the Blue Card scheme. In addition, while
few Member States such as Austria, Cyprus and Greece have not yet transposed the provisions of the EU
Blue Card into their respective national legislations, others such as the UK and Netherlands are not in
favour of the policy.