TEPA between India and EFTA states

• A Trade and Economic Partnership Agreement (TEPA) is a type of economic partnership agreement between countries. 

• They offer flexibility in terms of negotiating terms and conditions, as the parties involved can tailor the agreement to their specific needs and interests. 

• The negotiations for TEPA with EFTA countries were officially launched in 2008, and after some stalling, finalized on 10th March 2024.

• TEPA provides an opportunity to integrate into EU markets. 

• Indian companies can look to Switzerland as a base for extending its market reach to the EU. Over 40% of Switzerland’s global services exports are to the EU.

• EFTA has committed to promote investments with the aim to increase the stock of foreign direct investments by USD 100 billion in India in the next 15 years, and to facilitate the generation of 1 million direct employment in India, through such investments.

• TEPA also facilitates technology collaboration.

• TEPA would stimulate our services exports in sectors of our key strength / interest such as IT services, business services, personal, cultural, sporting and recreational services, other education services, audio-visual services etc.

EFTA

• European Free Trade Association (EFTA) is an intergovernmental organization set up in 1960  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.

• They are not part of the European Union (EU).

• In contrast to the EU, EFTA is not a customs union. This means that the individual EFTA States are free to set their own customs tariffs and arrange other foreign trade measures vis-à-vis the non-EFTA States.

• Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.