On March 10, the European Free Trade Association (EFTA) countries – Iceland, Liechtenstein, Norway and Switzerland – and India signed a Trade and Economic Partnership Agreement (TEPA). The landmark agreement between India and EFTA will bring significant economic benefits, such as better integrated and more resilient supply chains, new opportunities for businesses and individuals on both sides, leading to increased trade and investment flows, job creation and economic growth.
Federal Councillor Guy Parmelin said on behalf of the EFTA member states at the signing ceremony: “EFTA countries gain market access to a major growth market. Our companies strive to diversify their supply chains while rendering them more resilient. India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs. […] All in all, the TEPA will allow us to make better use of our economic potential and create additional opportunities for both India and the EFTA States”.
The agreement will improve market access and simplify customs procedures, making it easier for Indian and EFTA companies to expand their operations in their respective markets. In addition, the agreement aims to facilitate and promote investment opportunities between the parties.
Switzerland is India’s largest trading partner within EFTA, followed by Norway. Under the new agreement, India will soon have access to high-quality Swiss products at lower prices after it decided to eliminate tariffs on many Swiss goods over seven to ten years, including bicycle parts (in addition to watches, various food products and more). India’s major exports include chemicals, gems and jewelry, boats, machinery, and “certain types of textiles and apparel,” which were not further specified.
The EFTA-India TEPA was signed by Shri Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles of India; Guy Parmelin, Swiss Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research; Bjarni Benediktsson, Minister of Foreign Affairs, Iceland; Dominique Hasler, Minister of Foreign Affairs, Liechtenstein, and Jan Christian Vestre, Minister of Trade and Industry, Norway.
The signing of this agreement is the culmination of efforts to deepen the economic partnership between the EFTA States and India. Due to the complex ratification process in each country, the implementation of the agreement will take up to a year.
