GS 2 – INTERNATIONAL RELATIONS
Context
- India and the European Free Trade Association (EFTA) signed the Trade and Economic Partnership Agreement (TEPA), effective from October 1, 2025.
- EFTA Members: Iceland, Liechtenstein, Norway, and Switzerland.
Market Access
EFTA’s Offer
- Covers 92.2% of tariff lines → 99.6% of India’s exports.
- 100% tariff elimination for non-agricultural products.
- Concessions on processed agricultural products (PAPs).
India’s Offer
- Covers 82.7% of tariff lines → 95.3% of EFTA exports.
- More than 80% of imports from EFTA are gold.
- Offers designed keeping in mind PLI-supported sectors: pharmaceuticals, medical devices, processed food.
Exclusion List
- Sensitive products excluded: dairy, soya, coal, and certain agricultural goods.
Special Concession
- Duty-free access for basmati and non-basmati rice, without reciprocity.
European Free Trade Association (EFTA)
- Established: 1960 by the Stockholm Convention.
- Nature: Regional trade organisation & free trade area.
- Members: Iceland, Liechtenstein, Norway, Switzerland (non-EU countries).
- Headquarters: Geneva, Switzerland.
Key Features
- Created as an alternative to the European Economic Community (EEC) (later EU).
- Promotes free trade and economic integration among members & with global partners.
- Members are not part of the EU, but some participate in the European Economic Area (EEA) (Iceland, Liechtenstein, Norway).
- Switzerland maintains bilateral agreements with the EU instead of EEA membership.