EFTA To Launch Free Trade Talks With India

by Ulrika Lomas, Tax-News.com, Brussels

30 January 2008

Ministers from European Free Trade Area (EFTA) governments have agreed to launch free trade negotiations with India.

The decision was announced by the Swiss government on 26th January as ministers of the EFTA states, which include Iceland, Liechtenstein, Norway and Switzerland, met with India's Minister of Commerce and Industry, Kamal Nath, on the fringes of the World Economic Forum's annual meeting in Davos.

A joint study group last year conducted a feasibility study at an official level of a comprehensive trade and investment agreement between the EFTA states and India. The subsequent report concluded that a comprehensive trade and investment agreement between the EFTA states and India would significantly enhance bilateral economic relations (trade in goods, services, investment) and could strengthen the competitiveness of firms from both parties. The report recommends the adoption of free trade negotiations.

The ministers acknowledged the study group's report, and took the decision to open negotiations. India is one of the world's ten largest economies.

From Switzerland's point of view, the agreement sought should contribute to improving the competitiveness of Swiss firms on the Indian market, and to enhancing access to one of the most promising emerging markets.

For Switzerland, a country dependent on exports with diversified markets worldwide, the conclusion of free trade agreements with important partner countries - alongside membership of the WTO and the contractual relations with the European Union - is one of three main pillars in its policy of market liberalisation, and of improving the general conditions for foreign trade.

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