Implementation status of Trade and Economic Partnership Agreement(TEPA)

Syllabus :GS 2/IR/GS3/Economy

In News

Shri Sunil Barthwal, Secretary of the Department of Commerce, visited Norway to advance the goals of the Trade and Economic Partnership Agreement (TEPA).

About TEPA

• It was signed in March 2024 between India and four EFTA countries: Iceland, Liechtenstein, Norway, and Switzerland.
  • EFTA offers 92.2% tariff lines, covering 99.6% of India’s exports, with market access for 100% non-agri products and tariff concessions on processed agricultural products (PAP).
  • India offers 82.7% tariff lines, covering 95.3% of EFTA exports.

Focus Areas of TEPA:

• Service Sectors: TEPA will stimulate India’s service exports in IT, business, education, cultural, and audio-visual sectors.
  • EFTA offers better access for digital delivery of services, commercial presence, and mobility for key personnel.
• Impacts on Manufacturing: TEPA supports India’s domestic manufacturing in sectors such as infrastructure, pharmaceuticals, chemicals, food processing, logistics, and banking.
• Technology and R&D Collaboration: TEPA facilitates technology collaboration and access to cutting-edge technologies in fields like renewable energy, health sciences, and innovation.

Expected Benefits for India:

• Creation of direct jobs, particularly for India’s young workforce.
• Enhanced vocational and technical training opportunities.
• Facilitates technology collaboration in precision engineering, renewable energy, health sciences, and R&D.
• It will  boost 99.6% of Indian exports with Market Access to EFTA countries and drive $100 billion investment

Future Outlook 

• TEPA is expected to enhance India’s integration into European markets, creating opportunities for both goods and services exports, while also providing access to advanced technologies and boosting India’s economic growth.

Do you know ? – The European Free Trade Association (EFTA) is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland.  – It was set up in 1960 by its then seven Member States for the promotion of free trade and economic integration between its members. Features

Source: TH