India seeks to speed up implementation of TEPA during Trade Minister’s visit to Norway

India has stepped up efforts to implement the Economic and Trade Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), with Commerce Minister Sunil Barthwal leaving for a four-day trip to Norway on November 22.

The visit underscores India’s commitment to greater participation in global trade as TEPA offers unprecedented opportunities for Indian exports, services and investments.

The agreement, signed in March 2024 with EFTA countries Switzerland, Norway, Iceland and Liechtenstein, aims to strengthen India’s trade relations with the bloc by removing trade barriers and increasing market access.

Mint was the first to report the development on March 9, and the deal was signed a day later.

TEPA’s potential to provide access to 99.6% of Indian exports to EFTA markets and its $100 billion investment plan make it a key agreement for India’s economic diplomacy.

Bartval’s tasks included discussions with Norwegian officials, parliamentarians and business leaders to speed up the ratification of TEPA and promote trade and investment, the trade ministry said in a statement on Saturday.

Key meetings were held with Thomas Norvoll, State Secretary of Trade, Industry and Fisheries of Norway, and Cecily Myrseth, Minister of Trade and Industry, focusing on the next steps for TEPA and the mobility of Indian talent, it said.

Progress on TEPA is consistent with India’s broader trade strategy, especially ongoing negotiations with the European Union on a free trade agreement (FTA).

India’s trade deficit with EFTA countries widened in 2023-24, according to the Commerce Ministry. Exports rose to $1.94 billion from $1.92 billion in 2022-23 and $1.74 billion in 2021-22. However, imports rose to $22 billion, up from $16.74 billion in 2022-23, although down from $25.5 billion in 2021-22.

EFTA countries are not part of the EU. This is an intergovernmental organization for the development and intensification of free trade. It was founded as an alternative for states that did not want to join the European Community.

“EFTA’s proposal under TEPA includes tariff concessions for 92.2% of its tariff lines, covering 99.6% of Indian exports. This includes full market access for non-agricultural products and significant concessions for processed agricultural products. India, in turn, has agreed to 82.7% of its tariff lines covering 95.3% of EFTA exports,” the ministry said.

The agreement is expected to strengthen the Make in India and Atmanirbhar Bharat initiatives by expanding domestic manufacturing in sectors such as pharmaceuticals, engineering, food processing and renewable energy.

It also facilitates access to EFTA’s technology leadership in precision engineering, health sciences and green innovation, the ministry said.