The European Free Trade Association (EFTA) is coming close to finalising a free-trade deal with India, according to multiple sources.
Made up of Iceland, Liechtenstein, Norway and Switzerland, EFTA is set to sign a deal that may see it invest up to $100bn (€93bn) into India. Such a move, wrote euronews, would be unprecedented in guaranteeing such investments – however, the deal is yet to be finalised.
As Doloresz Katanich of euronews wrote: “India is one of the world’s fastest-growing large economies, with an annual projected GDP growth rate of over 8%. It is also expected to be the third-biggest economy by 2030, according to financial research giant S&P Global.” India is also negotiating several other free-trade deals, including with the EU, the UK and Australia. It also recently signed an investment treaty with the UAE.
According to EFTA, the body met with Indian delegates in New Delhi last month for what was the 21st round of negotiations. “The focus of this round was on addressing issues remaining at the level of both heads and experts in the following areas; trade in goods, trade in services, rules of origin, trade facilitation, investment promotion and cooperation, intellectual property rights, and trade and sustainable development,” it explained.
Outlining the recent history of the two parties’ economic relations, it said: “Over the past two decades, total trade between the EFTA states and India has been growing steadily. In 2022, combined EFTA-India merchandise trade surpassed $6.1bn, with the primary imports to the EFTA states consisting of organic chemicals (27.5%), while machinery (17.5%) and pharmaceutical products (11.4%), excluding gold, constituted the main exports to India. Services trade and foreign direct investment have also reached substantial levels.”
Eyes on Thailand
EFTA is also pursuing a free-trade agreement with Thailand, the world’s 30th-largest economy by GDP. According to the International Trade Administration, it has 14 free-trade agreements with eight countries, with another seven under discussion. Delegates of EFTA went to Bangkok at the beginning of the month for the eighth round of negotiations with Thailand.
Those discussions focused on resolving outstanding matters across various sectors, including trade in goods, rules of origin, trade in services, investment, small and medium-sized enterprises, trade and sustainable development, government procurement, co-operation and capacity building, trade remedies, legal and horizontal issues, and intellectual property rights.
