INDIA: TEPA Marks Landmark Trade and Economic Partnership Agreement with EFTA

India and the European Free Trade Association (EFTA) signed a trade and economic partnership agreement (TEPA) on March 10, 2024. This significant milestone solidifies the economic ties between India and the EFTA.

The TEPA stands as India’s first free trade agreement with four European nations: Iceland, Liechtenstein, Norway, and Switzerland. It encompasses 14 chapters, addressing crucial aspects such as intellectual property (IP) rights, market access, rules of origin, trade facilitation, investment promotion, services, and sustainable development.

A press release from India stated that IP rights–related commitments in the TEPA are at the level of the TRIPs Agreement (the Agreement on Trade-Related Aspects of Intellectual Property Rights) and that the TEPA fully addresses India’s interest in generic medicines and concerns related to the evergreening of patents.

The pact encompasses comprehensive provisions for protecting, acquiring, and enforcing IP rights, including copyright, trademarks, patents, plant varieties, undisclosed information, industrial designs, geographical indications, country names, indications of source, and state emblems. It refers to key international IP rights instruments, notably the World Trade Organization Agreement on TRIPs. The parties commit to giving due regard to ratifying or acceding to additional EFTA agreements on IP rights. The TEPA also incorporates principles of national treatment and most-favored-nation status. Specific articles addressing the TRIPs Agreement, public health, genetic resources, and cooperation supplement these provisions.

Notably, EFTA has committed to promoting investments worth US $100 billion in India over the next 15 years, with the aim of generating 1 million direct jobs, excluding the foreign portfolio investment, and to empower Indian exporters to access specialized inputs, create a conducive trade and investment environment, and integrate into EU markets through Switzerland as a base.

EFTA extends access to 92.2 percent of its tariff lines, encompassing 99.6 percent of India’s exports. Its offer includes 100 percent coverage of non-agricultural products and tariff concessions on processed agricultural products. India is reciprocating with access to 82.7 percent of its tariff lines, covering 95.3 percent of EFTA exports, notably exempting sensitive sectors like gold. Considerations for sectors like pharma, medical devices, and processed food were made, while certain industries such as dairy, soya, coal, and sensitive agricultural products remain excluded.

The impact of TEPA will be significant in shaping India’s trade and economic landscape over the next 15 years by strengthening economic ties between India and EFTA countries, and fostering increased trade, investment, and job creation.

Although every effort has been made to verify the accuracy of this article, readers are urged to check independently on matters of specific concern or interest. Law & Practice updates are published without comment from INTA except where it has taken an official position.

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