India Launches EFTA Desk To Strengthen Trade And Investment Ties with EFTA Nations | Current Affairs | Vision IAS
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India Launches EFTA Desk To Strengthen Trade And Investment Ties with EFTA Nations

Posted 11 Feb 2025

2 min read

EFTA Desk will serve as the main contact for EFTA businesses, providing market insights, addressing concerns, and supporting expansion.

  • EFTA desk is a key part of the India-EFTA Free Trade Agreement (TEPA), a Trade Agreement between India and EFTA, signed in 2024. 

Key Highlights of TEPA

  • First-ever Binding FTA: binding commitment of $100 bn investment  and 1 million direct jobs in the next 15 years has been given. 
  • Tariff Reduction: EFTA eliminates 92.2% of tariff lines, benefiting 99.6% of India’s exports.
  • Market Access: Full access for non-agri products and concessions on Processed Agricultural Products (PAP).
  • Enhanced Services Access: Services offers from EFTA include-
    • Mode 1: Digital delivery of services.
    • Mode 3: Commercial presence.
    • Mode 4: Easier temporary stay for key personnel.
  • Intellectual Property Rights (IPR): Aligns with TRIPS for strong protection.
  • Professional Recognition: Covers fields like nursing, chartered accountancy, and architecture.
  • Rules of Origin & Trade Remedies: Clear regulations to ensure smooth trade and safeguard interests.

Challenges Associated with TEPA

  • Strict IPR rules could impact India’s generic drug industry. 
  • Trade imbalances, especially due to high gold imports from Switzerland, need careful management. 
  • The 16-year negotiation process reflects the complexity of aligning interests. 

About EFTA 

  • Formed in 1960, European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. 
  • It was set up for the promotion of free trade and economic integration of its members. 
  • Switzerland is India's largest EFTA trade partner, followed by Norway.
  • Tags :
  • TEPA
  • European Free Trade Association
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