India EFTA sign TEPA

• India–European Free Trade Association signed a Trade and Economic Partnership Agreement (TEPA)
• India has been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries, which has now been approved by the Union Cabinet chaired by the Prime Minister.
• Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.

ABOUT TEPA

• The agreement comprises of 14 chapters with main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development and other legal and horizontal provisions.
• EFTA has committed to promote investments with the aim to increase the stock of foreign direct investments by USD 100 billion in India in the next 15 years, and to facilitate the generation of 1 million direct employment in India, through such investments.
  • The investments do not cover foreign portfolio investment.
  • For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.
• EFTA is offering 2% of its tariff lines which covers 99.6% of India’s exports.
  • The EFTA’s market access offer covers 100% of non-agri products and tariff concession on Processed Agricultural Products (PAP).
• India is offering 82.7% of its tariff lines which covers 95.3% of EFTA exports of which more than 80% import is Gold.
  • The effective duty on Gold remains untouched.
  • Sensitivity related to PLI in sectors such as pharma, medical devices & processed food etc. have been taken while extending offers.
  • Sectors such as dairy, soya, coal and sensitive agricultural products are kept in exclusion list.
• India has offered 105 sub-sectors to the EFTA and secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.
• TEPA has provisions for Mutual Recognition Agreements in Professional Services like nursing, chartered accountants, architects etc.

ABOUT EFTA

• EFTA is an inter-governmental organization founded by Stockholm Convention in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States.
• Members include Switzerland, Iceland, Norway & Liechtenstein.
• These countries are not part of the European Union (EU).

EFTA is one important economic block out of the three (other two – EU &UK) in Europe.