India-EFTA Trade and Economic Partnership Agreement: Key Highlights

India and the European Free Trade Association (EFTA) are included Switzerland, Iceland, Norway and Liechtenstein have signed Trade and Economic Partnership Agreement (TEPA). This modern and ambitious agreement marks India’s first free trade agreement (FTA) with four developed countries in Europe, providing significant economic opportunities and promoting free trade and economic integration.

1. Investment commitment and job creation

  • EFTA is committed to increase foreign direct investment in India $100 billion Over the next 15 years, the goal is to generate 1 million direct jobs.
  • This historic commitment underpins a binding agreement to promote goal-oriented investment and job creation, a first in an FTA.

2. Market Access and Fees

  • EFTA provides access to 92.2% of its tariff lines 99.6% of India’s exportsWhich includes tariff concessions on non-agricultural products and processed agricultural products (PAP).
  • India reciprocates by offering access to 82.7% of its tariff lines 95.3% of EFTA exports, Some sensitive areas have been excluded.

3. Regional Commitments

  • India provides access 105 sub-sectors for EFTA and secure commitments in a variety of areas, including 128 from Switzerland, 114 from Norway, 107 from Liechtenstein and 110 from Iceland.
  • Attention has been paid to the sensitivity of sectors such as pharmaceuticals, medical devices and processed food, with some sectors being excluded from the proposals.

4. Services and Intellectual Property Rights (IPR)

  • TEPA encourages export of services particularly in IT services, business services, education and audio-visual services.
  • Commitments on intellectual property rights are at the TRIPS level, addressing concerns related to generic drugs and patent evergreening.

5. Sustainable development and market integration

  • TEPA signals commitment towards sustainable development, inclusive growth and environmental protection.
  • This provides the opportunity to integrate into EU markets, particularly through Switzerland, which serves as a basis for access to EU markets.

6. To promote domestic manufacturing and employment generation

  • TEPA promotes “Make in India” and self-reliant India by encouraging domestic manufacturing in various sectors such as infrastructure, pharmaceuticals and transportation.
  • It will accelerate job creation for India’s youth workforce over the next 15 years and facilitate technology collaboration and access to leading technologies.

European Free Trade Association (EFTA) Overview

  1. Establishment: Established in 1960 as an intergovernmental organization.
  2. Member countries: It currently has four member states: Switzerland, Iceland, Norway and Liechtenstein.
  3. Objective: Formed to promote free trade and economic integration among its member countries.
  4. trade relations: Maintains close trade relations with the European Union (EU) and other countries around the world.
  5. trade agreements: Engages in negotiating and signing trade agreements, both regionally and globally.
  6. market access: Provides access to the markets of its member countries, facilitating trade and investment opportunities.
  7. Tariff Reduction: Implements tariff reductions and concessions to promote trade liberalization.
  8. Services: Promotes trade in services including digital delivery and commercial presence.
  9. Intellectual property: Ensures the protection of intellectual property rights through agreements and commitments.
  10. continuous development: Committed to sustainable development goals and environmental protection in trade agreements.

India-EFTA Trade and Economic Partnership Agreement: Highlights_40.1

Leave a Comment