- The pact is signed between India and European Free Trade Association (EFTA) States including Iceland, Liechtenstein, Switzerland, and Norway.
- EFTA states will get duty-free access to Indian markets for several industrial products.
- India in return will get $100bn investment from EFTA block in the coming 15 years.
Trade and Economic Partnership Agreement (TEPA) is signed between the European Free Trade Association (EFTA) States – Iceland, Liechtenstein, Norway, and Switzerland – and India. It is a $100bn landmark free trade agreement that aims to enhance economic cooperation, ease import tariffs, and promote investment and trade between the member states.
The deal was signed after multiple rounds of negotiations spanning 16 years. It will help to create investment opportunities across different sectors in India including, machinery, pharmaceutical, and manufacturing, and create 1 million jobs in the coming 15 years. India in return committed to lower the import tariffs on industrial products from the four EFTA countries namely, Iceland, Liechtenstein, Norway, and Switzerland. EFTA communique said.
Federal Councillor Guy Parmelin, addressing on behalf of the EFTA Member States said that
“EFTA countries gain market access to a major growth market. Our companies strive to diversify their supply chains while rendering them more resilient. India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs. […] All in all, the TEPA will allow us to make better use of our economic potential and create additional opportunities for both India and the EFTA States”.
It will bring significant economic benefits in the form of an integrated and more robust supply chain, increased trade and investment flow among the member nations, job creation, additional opportunities for individuals and businesses, and economic growth. The officials said.
THE EFTA states will get access to a fast-growing market of 1.4 billion people, and Indian exporters will access European and global markets with the help of this pact. said India’s Minister for Commerce and Industry Piyush Goyal.
The agreement covers various elements such as trade in goods and services, sustainable development, gender equity, intellectual property, and dispute settlement. Goyal said in a statement.
The agreement between EFTA states and India aims to simplify trade by simplifying custom-related barriers and procedures that will help to expand business to gain access to respective markets. It will help to boost trade between the member states leading to easy access to markets. Moreover, the agreement aims to promote investment opportunities in the form of foreign direct investment between the parties.
The agreement marks a significant development and creates a new chapter in the relationships of EFTA states and India. It reflects the efforts of member states to enhance economic cooperation, create investment opportunities, promote trade, and ease custom-related procedures for easy access to markets in the respective countries.
The agreement needs to be ratified by India and four EFTA block nations before it can take effect.
The European Free Trade Association (EFTA) is a regional trade organization established on 3 May 1960 consisting of four European states: Switzerland, Iceland, Liechtenstein, and Norway. According to the European Free Trade Association, EFTA has 29 free trade agreements with non-EU countries to boost trade and enhance economic cooperation. In addition, the block has established preferential trade relations with 40 states across the world, in addition to the 27 member states of the European Union (EU).
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