- 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.
European Free Trade Association
- It is an intergovernmental organization that promotes free trade and economic integration between its four member states –
- Iceland
- Liechtenstein
- Norway
- Switzerland
- EFTA 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.
Dig Deeper: India’s Free Trade Agreements with various countries & issues at WTO
