European Free Trade Association (EFTA)

• India and European Free Trade Association (EFTA) states which are negotiating the Trade and Economic Partnership Agreement (TEPA), have agreed for early conclusion of negotiations for a free trade agreement.
• The primary objective of these negotiations is to establish a fair, mutually beneficial, and comprehensive trade deal between India and EFTA.
• The TEPA aims to create opportunities for trade and investment between India and EFTA by eliminating/reducing tariffs and non-tariff barriers on a wide range of products.

ABOUT EFTA

• EFTA is an inter-governmental organisation for the promotion and intensification of free trade.
• It was founded as an alternative for states that did not wish to join the European Community.
• Established –1960
• Members – Norway, Iceland, Liechtenstein and Switzerland (remember mnemonic – NILS)
• EFTA is India’s 9^th largest trading partner, accounting for about 2.5% of India’s total merchandise trade in 2020-21.
• EFTA countries are not part of the European Union.