India-European Free Trade Association (EFTA) signed a Trade and Economic Partnership Agreement (TEPA) on 10th March 2024.
Key Highlights
- India has been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries.
- 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 92.2% 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.
- Services offers from EFTA include better access through digital delivery of Services (Mode 1), commercial presence (Mode 3) and improved commitments and certainty for entry and temporary stay of key personnel (Mode 4). Under the General Agreement on Trade in Services (GATS), services can be supplied internationally in four different ways — known as “modes of supply”.
- TEPA has provisions for Mutual Recognition Agreements in Professional Services like nursing, chartered accountants, architects etc.
About EFTA
- EFTA is an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States.
- EFTA was founded by the Stockholm Convention. EFTA countries comprising Switzerland, Iceland, Norway & Liechtenstein.
- These are Non-EU countries.
- Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.
