Under 100 Words: A Compact Summary
India and EFTA (Iceland, Liechtenstein, Norway, Switzerland) are set to sign a free trade agreement, approved by the Union Cabinet on March 7. The deal aims to boost bilateral trade and investments, covering various sectors. EFTA holds 29 FTAs with 40 countries. In the fiscal year 2022-23, India’s exports to EFTA increased to USD 1.92 billion, while imports decreased to USD 16.74 billion, resulting in a trade surplus for EFTA.
- India and the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway, and Switzerland are set to sign a free trade agreement on Sunday.
- The agreement aims to enhance bilateral trade in goods, services, and investments, according to an official statement.
- The Union Cabinet approved the pact on March 7, as confirmed by an official. India and the European Free Trade Association (EFTA) have engaged in negotiations for the Trade and Economic Partnership Agreement (TEPA) since January 2008, aiming to strengthen economic relations.
- The agreement comprises 14 chapters covering various aspects such as trade in goods, rules of origin, intellectual property rights (IPRs), trade in services, investment promotion and cooperation, government procurement, technical barriers to trade, and trade facilitation.
- EFTA currently holds 29 free trade agreements (FTAs) with 40 partner countries, including Canada, Chile, China, Mexico, and Korea (Free Trade Agreement).
- In these FTAs, participating nations significantly reduce or eliminate customs duties on a wide range of traded goods, while also facilitating trade in services and investments through relaxed norms.
- It’s noteworthy that EFTA member countries are distinct from the European Union (EU). EFTA operates as an inter-governmental organization focused on promoting and enhancing free trade.
- Established as an alternative for states that chose not to join the European community, EFTA stands as a separate entity.
- In the fiscal year 2022-23, India’s exports to EFTA countries amounted to USD 1.92 billion, an increase from USD 1.74 billion in the previous fiscal year (2021-22).
- Conversely, imports totaled USD 16.74 billion in the last fiscal year, showing a decrease from USD 25.5 billion in 2021-22.
- According to data from the Commerce Ministry, there is a trade surplus in favor of EFTA.
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