Context

• India and EFTA signed a free trade agreement to promote investment and two-way trade in goods and services.

Key Points

• This agreement covers many areas including intellectual property rights (IPR), trade in services, investment promotion and cooperation, trade facilitation.
• The signing of the Trade and Economic Partnership Agreement with the European Free Trade Association symbolizes the results of almost 15 years of hard work.
• Under the free trade agreement, the two trading partners significantly reduce or eliminate customs duties on a maximum number of goods traded between them, in addition to easing norms to promote trade in services and investments.
• It is noteworthy that India and EFTA have been negotiating the agreement since January 2008, which is officially called Trade and Economic Partnership Agreement (TEPA).
• Both sides had resumed talks in October 2023.
• There are 14 chapters in this agreement. These include trade in goods, rules of origin, intellectual property rights (IPR), trade in services, investment promotion and cooperation, government procurement, technical barriers to trade and trade facilitation.
• In return, India will get more foreign investment from EFTA.
• This will ultimately lead to an increase in good jobs.
• Under a free trade agreement, the two trading partners significantly reduce or eliminate customs duties on a maximum number of goods traded between them, in addition to easing norms to promote services and investment.
• India-EFATA bilateral trade was to be $18.65 billion in 2022-23. It was $27.23 billion in 2021-22. The trade deficit in the last financial year was $14.8 billion.
• Among these countries, Switzerland is India's largest trading partner.

Important Facts For Exam

About EFTA

• EFTA is an intergovernmental organization that was established in 1960 as an alternative trade bloc for European states that were unable or unwilling to join the European Union (EU).
• EFTA includes Iceland, Liechtenstein, Norway and Switzerland, which are not parts of the EU but have access to its single market through various agreements.
• Objective: To promote free trade.