Trade and Economic Partnership Agreement (TEPA)

Current Context : Recently, the Commerce Secretary visited Norway for implementation Trade and Economic Partnership Agreement between India and European Free Trade Association (EFTA).

What is EFTA?

• Established in 1960, EFTA includes Iceland, Liechtenstein, Norway, and Switzerland.
• It promotes free trade and economic integration.

India’s Trade with EFTA:

• Bilateral trade (2022-23): USD 18.65 billion.
• Major export destinations: Switzerland, followed by Norway. India has a trade deficit with EFTA, primarily due to gold imports.

About TEPA (Signed in March 2024) 

Objectives:

1. Increase FDI by USD 100 billion and create 1 million direct jobs in India over 15 years.
2. Strengthen trade and economic ties by reducing tariffs and removing trade barriers.

Key Features:

1. Covers 14 chapters, including trade in goods/services, rules of origin, intellectual property rights (IPR), and investment promotion.
2. Focuses on market access for goods and services, sanitary and phytosanitary measures, and trade facilitation.

Market Access Commitments:

1. EFTA: Offers 92.2% tariff lines, covering 99.6% of India’s exports.
2. India: Offers 82.7% tariff lines, covering 95.3% of EFTA’s exports (80% are gold-related).