India, European Free Trade Association explore possibility of comprehensive pact

India and the European Free Trade Association (EFTA) states - comprising Iceland, Liechtenstein, Norway, and Switzerland - have taken an important step towards forging a Trade and Economic Partnership Agreement (TEPA).

During a ministerial meeting held in Brussels on Sunday (May 14, 2023), Commerce & Industry Minister Piyush Goyal held discussions with his counterparts from EFTA states on the modalities of engagement for working towards a comprehensive TEPA. This second Ministerial gathering followed a series of expert meetings that took place online the previous week.

"Met European Free Trade Association (EFTA) Ministerial Delegation led by @ParmelinG, Swiss Federal Councillor in Brussels today. With both sides looking for closer cooperation, exchanged views on enhancing our trade across critical sectors, leading to mutual growth & prosperity," Goyal tweeted.

The meeting was attended by Swiss Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research Guy Parmelin; Ambassador and Permanent Representative of Iceland in Geneva Einar Gunnarsson; Ambassador and Permanent Representative of Liechtenstein to EFTA, WTO, and the UN in Geneva Kurt Jäger; and Specialist Director at the Norwegian Ministry of Trade, Industry, and Fisheries Erik Andreas Underland.

The Press Communique released following the meetings stated that the ministerial meeting marked a significant milestone in taking forward the negotiations on a TEPA between India and EFTA. Both sides emphasised the importance of building their discussions on principles of trust and respect for each other's sensitivities to achieve a fair, equitable and balanced agreement.

"Indeed, a TEPA between EFTA and India could bring significant economic benefits, such as integrated and resilient supply chains and new opportunities for businesses and individuals on both sides leading to increased trade and investment flows, job creation, and economic growth," the communique said.

The Press Communique added that the delegations agreed to ramp up their efforts and continue their discussions at a steady pace, with several more meetings planned over the coming months, to arrive at a common understanding on critical issues pertaining to TEPA.