Published: 18th May, 2023
Context
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 eliminate customs 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.
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India’s trade with EFTA
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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
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