Minutes before India and the European Free Trade Association (EFTA) countries signed a free trade agreement (FTA), on March 10, there was the ceremonial gift exchange between Swiss state secretary for economic affairs, Helene Budliger Artieda, who led the negotiations for EFTA, and India's trade minister, Piyush Goyal. Artieda presented Goyal with a candid picture showing their first meeting on the sidelines of the G20 in Bali in 2022.
Impressed with the wrapping of the framed picture, Goyal quipped, "We should get the packaging technology also to India."
On the face of it, the Trade and Economic Partnership Agreement (TEPA) with the EFTA countries makes little sense. EFTA includes Switzerland, Iceland, Norway, and Liechtenstein, with a combined population of 15 million. The export potential is negligible ($1.9 billion exports in 202324).
But the expertise of these affluent nations, especially Switzerland, in precision technology and India's hunger for foreign direct investment tipped the scales in favour of the agreement.
Balancing the deal
India was keen to include easier immigration rules for Indians to EFTA countries in return for market access to its 1.4 billion people to make the deal balanced. However, migration is a sensitive issue in countries such as Switzerland, with the cantons (states) having exclusive right to negotiate labour-related matters.
"The idea of the investment package came because the Indian side said balancing of market access could be done by giving access to Indian skilled professionals to EFTA countries.
We are small countries and can't just open our labour markets to Indians. So, it was an unbalanced deal, and the investment package was brought about to balance the deal. The investment package was a Swiss proposition that flew and not from the Indian side," an EFTA negotiator said, requesting anonymity.
この記事は Business Standard の May 20, 2024 版に掲載されています。
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この記事は Business Standard の May 20, 2024 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
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