Comprehensive Trade and Economic Partnership Agreement (TEPA)

A free trade agreement between India and four-nation bloc EFTA is likely to help enhance two-way commerce, investment flows, job creation and economic growth.

Key-highlights

• India’s Commerce and Industry Minister discussed modalities of engagement for working towards a comprehensive Trade and Economic Partnership Agreement (TEPA) with representatives of European Free Trade Association (EFTA) states - Iceland, Liechtenstein, Norway, and Switzerland.
• The delegations agreed to ramp up their efforts and continue discussions at a steady pace, with several more meetings planned over the coming months, to arrive at a common understanding on critical issues pertaining to TEPA.

What is TEPA?

• A free trade agreement between the two regions is officially dubbed as TEPA.
• Under such pacts, two trading partners
  • significantly reduce or eliminatecustoms duties on the maximum number of goods traded between them
  • eases norms to promote trade in services and investments

About European Free Trade Association (EFTA)

• The European Free Trade Association (EFTA) is an intergovernmental organisation set up for the promotion of free trade and economic integration to the benefit of its four Member States – Iceland, Liechtenstein, Norway and Switzerland– and the benefit of their trading partners around the globe.
• EFTA countries are not part of the European Union (EU).
• It was founded as an alternative for states that did not wish to join the European Community.

Significant benefits

• A TEPA between EFTA and India could bring significant economic benefits, such as
  • integrated and resilient supply chains
  • new opportunities for businesses and individuals on both sides
  • increased trade and investment flows, job creation, and economic growth