India and the European Free Trade Association (EFTA) bloc, comprising Iceland, Liechtenstein, Norway, and Switzerland, have signed a trade and economic partnership agreement (TEPA).
The agreement is expected to enhance trade and investments between the two regions, with the phased removal of customs duties on various high-quality Swiss products over seven to ten years.
Key categories include seafood, fruits, coffee capsules, oils, sweets, processed foods, smartphones, bicycle parts, medical equipment, clocks, watches, medicines, dyes, textiles, apparel, iron and steel products, and machinery equipment.
Some notable Swiss products, such as watches and chocolates, will see duty concessions, allowing domestic customers access to these items at lower prices.
The TEPA documents reveal that India has offered tariff concessions on a range of products imported from Switzerland. The phased reduction in tariffs aims to increase the competitiveness of Indian goods and promote growth in various sectors.
While India has granted tariff concessions to Swiss goods, the agreement also outlines the reduction of tariffs on cut and polished diamonds from 5 percent to 2.5 percent over five years. However, the effective duty on gold remains at 15 percent, providing no real benefit. For wines, the duty reduction is gradual, with concessions varying based on the price range.
The TEPA is expected to strengthen trade ties between India and EFTA nations and contribute to the growth of sectors involved in the bilateral exchange of goods and services. The agreement’s implementation is anticipated to take up to a year due to the ratification process in different countries.
