Switzerland’s Ambassador to India, Ralf Heckner, has expressed optimism that the crucial European Free Trade Association (EFTA) deal with the country would be wrapped up before the 2024 general elections.
Heckner stressed on the importance of the proposed trade deal for unlocking innovation and investment opportunities.
“Both sides have been negotiating very closely and seriously over the last more than 12 months. I remain positive that the deal would be wrapped up before the (2024) elections,” he told PTI.
The envoy was recently in the city to unveil the Kolkata chapter of the Swiss-India Chamber of Commerce. Parliamentary elections in India are due in early 2024.
“If India wants innovation, it needs to work with about 12 to 15 countries, and one of those countries is Switzerland for a world of investments and innovation,” we will have a more strategic innovation relationship with India,” Heckner stated.
Noting the sharp rise in visa application processing numbers, which hit a record 2 lakh in 2023 compared to pre-COVID levels of 1.6-1.7 lakh, Heckner said this trend would lead to enhanced trade and cultural ties between India and Switzerland in the years ahead. The EFTA-India merchandise trade exceeded $6.1 Billion in 2022.
What is the Switzerland dominated EFTA states?
Switzerland led EFTA states are negotiating deals for TEPA (Trade and Economic Partnership Agreement); more about TEPA
A trade and Economic Partnership Agreement is a type of economic partnership agreement between countries. TEPA agreements offer flexibility in terms of negotiating terms and conditions, as the parties involved can tailor the agreement to their specific needs and interests.
TEPA agreements often include stronger provisions on labor and environmental standards, as well as provisions for dispute settlement and enforcement mechanisms. TEPA agreements are designed to promote mutual benefits for both parties, rather than being one-sided.
TEPA agreements include a wide range of economic activities, including investment, trade in goods and services, and intellectual property. They also involve competition law and government contracting. Because the parties involved can customise the agreement to their unique needs and interests, TEPA agreements offer flexibility in terms of negotiating terms and conditions.
TEPA agreements are not intended to be unilateral; rather, they are intended to produce mutual benefits for both parties. Accordingly, the agreement should benefit both parties, as increased trade and investment result in increased economic growth and job creation. Stronger labour and environmental requirements, measures for resolving disputes, and enforcement mechanisms are frequently included in TEPA agreements.
More about FTAs; an agreement the Switzerland led EFTA states are keen to complete with India
A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism.
In the modern world, free trade policy is often implemented by means of a formal and mutual agreement of the nations involved. However, a free-trade policy may simply be the absence of any trade restrictions.
A government doesn’t need to take specific action to promote free trade. This hands-off stance is referred to as “laissez-faire trade” or trade liberalisation.
For example, a nation might allow free trade with another nation, with exceptions that forbid the import of specific drugs not approved by its regulators, or animals that have not been vaccinated, or processed foods that do not meet its standards.
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