EFTA Deal: India to link duty cuts with investments from companies of member nations
India is set to tie duty reductions associated with the trade agreement with the European Free Trade Association (EFTA) to investments made by companies from member nations, including Switzerland, Norway, Iceland, and Liechtenstein, reported TOI.
These nations have collectively pledged to invest $100 billion over a span of 15 years.
The FTA is scheduled to be signed on Sunday following its clearance by the Union cabinet on Thursday evening. Negotiations for the agreement commenced in 2008 but were halted after the Modi government assumed office in 2014, as per a TOI report.
In 2023, the talks resumed as India intensified its trade interactions with various nations, including the UK, European Union, Mauritius, Australia, UAE, and Canada.
«We will evaluate the level of investment during review meetings and determine the extent of tariff reduction accordingly,» TOI quoted a senior official as saying.
The report also stated that this approach marks the first instance of such a mechanism being implemented.
A potential impact
Countries like Switzerland have eliminated import duties on industrial goods while maintaining them on agricultural products. Potential tariff cuts could affect items such as watches, wine, chocolates, and machinery.
Regarding the reduction of tariffs on gold, a significant demand from the trading bloc, particularly Switzerland, India will lower the bound rate from 40 per cent to 39 per cent, while maintaining the effective duty at 15 per cent, the TOI report said, citing an official.
Further
