India-EFTA Trade Pact Set To Become Operational On Oct 1

(MENAFN- IANS) New Delhi, Sep 29 (IANS) The India-European Free Trade Association's (EFTA) Trade and Economic Partnership Agreement (TEPA) will officially become operational on October 1, with the four-nation bloc comprising Switzerland, Norway, Iceland and Liechtenstein.

Under the agreement, the European bloc has committed an investment of $100 billion over a period of 15 years which would facilitate the creation of one million direct jobs in India.

The government will host a formal event at Bharat Mandapam here to mark the occasion. Commerce and Industry Minister Piyush Goyal and ministers from the EFTA nations will preside over the function which will be attended by senior officials and industry representatives.

India and EFTA had signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024, but the implementation of the deal required procedural approvals in the member countries which took time.

Under the agreement, EFTA is offering 92.2 per cent of its tariff lines which cover 99.6 per cent of India's exports to the region. The EFTA's market access offer covers 100 per cent of non-agricultural products and tariff concessions on some processed agricultural products.

India is offering 82.7 per cent of its tariff lines which covers 95.3 per cent of EFTA exports. However, the effective duty on Gold remains untouched. Sensitivity related to PLI in sectors such as pharma, medical devices and processed food, etc. have been taken while extending offers. Sectors such as dairy, soya, coal and sensitive agricultural products are kept in the exclusion list.

The pact will reduce tariffs on specific EFTA goods for Indian consumers, such as Swiss watches, whisky and chocolates.

The agreement includes provisions for mutual recognition of services, allowing professionals in fields like nursing, chartered accountancy, and architecture to work in EFTA countries.

It also covers intellectual property rights, with a focus on addressing India's concerns about patent safeguards, particularly the evergreening of patents in pharma products.

Besides, the agreement includes a sustainability clause covering labour rights, environmental protection, and human rights.

Commerce Minister Piyush Goyal has termed the Trade and Economic Partnership Agreement (TEPA) as a“Trust and Efficiency Partnership”-a relationship built on mutual confidence and complementarity. He expressed optimism that this partnership would mark the beginning of a new era of cooperation between India and the four EFTA nations, opening new avenues for trade, investment, and innovation.

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