Switzerland Finalises Regulatory Steps For India-EFTA Trade Pact Effective Oct 1

(MENAFN- KNN India) New Delhi, Sep 5 (KNN) Switzerland, the largest economy in the European Free Trade Association (EFTA), has completed the regulatory adjustments required to implement the customs concessions under its trade agreement with India.

The agreement, signed in March 2024, will take effect from October 1.

EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, with Switzerland accounting for the bulk of India's trade with the bloc, particularly in gold.

According to a statement from the Swiss government, the accord-formally known as the Trade and Economic Partnership Agreement (TEPA)-marks the first time India has included legally binding provisions on trade and sustainable development in a free trade agreement.

The agreement also reaffirms the parties' rights and obligations under other international frameworks.

From India's perspective, the pact is expected to attract USD 100 billion in direct investments from EFTA members over the next 15 years.

One of its stated objectives is to promote trade relations in a manner that supports sustainable development and the balanced expansion of global commerce.

The Swiss statement emphasised that the agreement seeks to prevent violations of environmental and labour standards, while clarifying that harmonisation of such standards among member countries is not envisaged.

Under TEPA, India has granted Switzerland improved market access for 94.7 percent of its current exports, excluding gold.

Key beneficiaries include pharmaceuticals, machinery, optical instruments, watches, and processed agricultural goods.

In return, EFTA has committed to duty cuts on 92.2 percent of its tariff lines, covering 99.6 percent of India's exports. The offer spans 100 percent of non-agricultural products along with concessions on processed agricultural products.

Overall, India has offered concessions on 82.7 percent of its tariff lines, covering 95.3 percent of EFTA exports. However, gold-the largest import item-remains excluded, and sectors such as dairy, soya, coal, and sensitive farm products have also been kept out.

India maintains a significant trade deficit with EFTA. In 2024–25, exports to the bloc were valued at USD 1.96 billion, while imports reached USD 22.4 billion, largely due to USD 18.1 billion worth of gold imported from Switzerland.

(KNN Bureau)

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