Cabinet may consider EFTA, deal likely to be announced Sunday

livemint.com:

Mint reported that the four nations making up the European Free Trade Association (EFTA) have offered duty-free market access for India’s animal products, fish, processed food and vegetable oils in a trade pact that is expected to be signed next week. The EFTA nations–Iceland, Liechtenstein, Norway and Switzerland–have also proposed a $100 billion investment in India by their companies over 15 years, which is estimated to create about a million jobs. The two sides began negotiations for a trade treaty in 2008.

Mint earlier reported that the agreement with EFTA nations was expected to be signed as early as next week. As per the draft papers of the deal, duty-free access starts immediately and is the best offer among the other FTA partners. As per the contours of the deal, India also offered immediate duty elimination on 40% of trade lines where trade activities were low or nil.

It will allow the EFTA nations to export their goods and services without any tariff obligation, the first person said. India’s exports to the EFTA countries in FY24 (April 2023-January 2024) were at $1.87 billion, including items like chemicals, pharmaceuticals, apparel, and pearls, precious and semi-precious stones. India imported goods worth $20.45 billion from the EFTA countries in 2023, including pearls, precious or semiprecious stones, precious metals and coins valued at $16.7 billion.

The deal will also allow India’s services sector to increase its share of exports to Switzerland and Norway, which constitute a substantial share of exports to EFTA nations, the second person said. Both nations understand the sensitivities and are willing to expand the volume of trade beyond gold. In recent negotiations, EFTA members toned down their demands on