European Free Trade Association (EFTA) deal

• Switzerland’s Ambassador to India has expressed optimism that the crucial European Free Trade Association (EFTA) deal with the country would be wrapped up before the 2024 general elections.
• India and the EFTA states are negotiating a Trade and Economic Partnership Agreement (TEPA) with a view to boost economic ties between the two regions.
• Negotiations on the agreement were officially launched in January 2008.
• The EFTA-India merchandise trade exceeded USD 6.1 billion in 2022.

ABOUT EFTA

• EFTA is an intergovernmental organization established in 1960 by the Stockholm Convention.
• It comprises of Iceland, Liechtenstein, Norway, and Switzerland.
• These are all open, competitive economies committed to the progressive liberalization of trade in the multinational arena as well as in free trade agreements.
• EFTA is not a customs union.
  • The individual EFTA States are free to set their own customs tariffs and arrange other foreign trade measures vis-à-vis the non-EFTA States.
• The EFTA members are not part of the European Union (EU).