| European Free Trade Association: It is an intergovernmental organization that promotes free trade and economic integration between its four member states –Iceland LiechtensteinNorwaySwitzerlandEFTA was founded on January 4, 1960 by 7 countries: Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the UK. Iceland joined in 1970, Finland in 1986, and Liechtenstein in 1991. The UK left the EFTA in 1973 when it joined the EC, which later became the EU. |
- On March 10, 2024, India signed a Trade and Economic Partnership Agreement (TEPA) with the EFTA.
- Distinguished from previous agreements with nations like Australia, the UAE, and Mauritius, the India-EFTA deal incorporates environmental and labour issues, aligning with global trade standards which India has traditionally resisted.
- Moreover, it features a detailed investment chapter focused on investment facilitation rather than protection.
- A unique aspect of this FTA is the inclusion of specific obligations of conduct rather than results where EFTA countries have committed to a target of investing $50 billion within the first ten years, and another $50 billion over the following five years, along with facilitating the creation of one million jobs in India.
- These are goals EFTA countries will strive towards, without a binding requirement to achieve them. This agreement is a shift from India’s recent trade strategy, which had seen a separation of trade and investment agreements, as demonstrated by separate agreements with the UAE and discussions with the U.K.
Dig Deeper: India’s Free Trade Agreements with various countries & issues at WTO
