New Delhi: The free trade agreement between India and four-European nation bloc EFTA, which will come into force from October 1, will have legally binding provisions on trade and sustainable development, Switzerland said Wednesday.
“For the first time, India has laid down legally binding provisions on trade and sustainable development in a free trade agreement,” it said in a statement.
The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.
The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.
Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties.
The bloc committed an investment of USD 100 billion — USD 50 billion within 10 years after the implementation of the agreement and another USD 50 billion in the next five years — which would facilitate the creation of one million direct jobs in India.
This is a first-of-its-kind pledge agreed upon in any of the trade deals signed by India so far.
Switzerland said that the agreement increases legal certainty and predictability for bilateral economic exchanges.
“It also improves access to the Indian market for Swiss goods and services. India grants Switzerland improved market access for 94.7 per cent of existing exports (2018-2023, excluding gold),” it added.
These include pharmaceutical products, machinery, optical instruments, watches and processed agricultural products.
The pact, it said, also contains a provision in which the contracting parties confirm their rights and obligations under other international agreements.
These include agreements in the areas of trade, environment, social affairs and human rights.
“This is to ensure that neither the environmental and labour legislation of the partner countries nor international environmental and social laws are violated in connection with the agreement,” it added.
PTI
