The other European FTA that India is close to signing
NEW DELHI : 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, two people aware of the matter said. The EFTA nations—Iceland, Liechtenstein, Norway and Switzerland—have also proposed $100 billion of investment in India by their companies over 15 years, which could create about a million jobs, the people said on the condition of anonymity. The two sides began negotiations for a trade treaty in 2008.
“This (entry for animal products and investments) duty-free access starts immediately and is the best offer among the other FTA partners," one of the two people said. “This is all finalized and will be signed by early next week." According to the people cited above, this is the first time an Indian FTA comes with an investment commitment. Of this, $50 billion is to be invested in the first 10 years, and the rest in the next five.
A third government official said EFTA was initially willing to commit to only $50 billion, but doubled the figure later. In return, India has offered immediate duty elimination on 40% of trade lines where trade activities were low or nil, the people cited above said. It will allow the EFTA nations to export their goods and services without any tariff obligation.
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