Switzerland and India have reached a consensus on a free trade agreement (FTA) after 16 years of negotiations, according to a post by the Swiss Economy Minister Guy Parmelin on X . The deal is expected to create jobs for young Indians and safeguard Switzerland as an industrial location.
Background
The FTA negotiations between the European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland, and Liechtenstein, and India started in 2008 but were stalled due to disagreements over patent protection and market access . Parmelin met his Indian counterpart, Piyush Goyal, on the sidelines of the World Economic Forum in Davos last week and received a last-minute invitation to visit India for final talks.
Key features
Parmelin announced on X that the two parties had agreed on the broad outlines of the EFTA-India trade agreement, which include a new chapter on investment promotion and patent protection, a controversial subject in the past. India will still provide the finalised text on this subject, according to the Federal Department of Economic Affairs, Education and Research. The negotiations have not yet been concluded, and the two parties have agreed not to divulge any details.
Benefits
A free trade agreement with India should facilitate access to environmentally-friendly technologies and encourage investment, Parmelin said in an interview with SonntagsZeitung. He added that the poor in India will also benefit from the deal, which will create jobs for young Indians and safeguard Switzerland as an industrial location. Swissmem, the umbrella association of the Swiss technology industry, welcomed the news and supported Parmelin in the final sprint to achieve the broadest possible abolition of customs duties for their products.
Outlook
The EFTA-India trade agreement is one of several deals that Switzerland has been pursuing with emerging markets. Parmelin also announced that the free trade agreement between EFTA and Mercosur, which has been planned for years, could be concluded in 2024. Additionally, EFTA has updated its free trade agreement with Chile, which will exempt almost all Swiss exports to Chile from customs duties.