India-European Free Trade Association (EFTA) Trade Agreement : 12 Mar 2024

What is EFTA?

EFTA is an intergovernmental organization that was established in 1960
It is an alternative trade bloc for those European states that were unable or unwilling to join the European Union (EU).
EFTA comprises Iceland, Liechtenstein, Norway, and Switzerland.

Name of the Agreement:

Highlights of the Agreement:

Investment and Employment: EFTA commits to promoting investments to increase foreign direct investments by USD 100 billion in India in 15 years and generate 1 million direct jobs.
Market Access: EFTA offers 92.2% of its tariff lines, covering 99.6% of India’s exports. India offers 82.7% of its tariff lines, covering 95.3% of EFTA exports.
Service Sector: India has offered 105 sub-sectors with commitments secured in 128 to 114 sub-sectors from EFTA countries, focusing on IT services, business services, and more.
Intellectual Property Rights: Commitments related to IPR are at the TRIPS level, addressing India’s interests in generic medicines and concerns related to evergreening of patents.
Sustainable Development: TEPA emphasizes India’s commitment to sustainable development, inclusive growth, social development, and environmental protection.
Trade Facilitation: Aims to foster transparency, efficiency, simplification, harmonization, and consistency in trade procedures.

Why in News:

Recently, the European Free Trade Association (EFTA) States and India signed a Trade and Economic Partnership Agreement (TEPA).