Switzerland’s Federal Council has ratified the ambitious trade deal between India and the European Free Trade Association (EFTA). This pact, signed in March, includes four European nations: Norway, Switzerland, Iceland, and Liechtenstein.
Aimed at boosting trade across industries such as pharmaceuticals, manufacturing, technology, and machinery, the agreement sets the stage for deeper economic ties between India and EFTA countries.
The trade deal holds immense promise, with a potential investment of $100 billion in India over the next 15 years from the four European states. However, before the agreement takes effect, each signatory country must ratify it individually.
On Wednesday, the Swiss Federal Council formally presented the trade pact to Parliament, where it is expected to be debated in the upcoming winter or spring sessions.
The Swiss government emphasized the deal’s importance, particularly for enhancing the competitiveness of Swiss exports in India, now the world’s most populous country.
The agreement aims to eliminate customs duties on 98% of Indian imports and offer tariff relief on nearly 95% of Swiss exports to India, positioning Switzerland as a key European trading partner.
Beyond trade, the deal includes provisions for investment promotion, job creation, and a legally binding chapter on trade and sustainable development. This chapter includes environmental and labour standards, making EFTA the first partner with which India has agreed on such comprehensive terms.
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