Trade and Economic Partnership Agreement (TEPA)

About Trade and Economic Partnership Agreement (TEPA)

It is a comprehensive trade deal between India and the European Free Trade Association (EFTA) member nations.
It was signed in March 2024, to strengthen economic ties, boost trade in goods and services and promote investment between the parties.
Key Features:
- Tariff Reduction: EFTA is proposing to eliminate tariffs on 92.2 % of its tariff lines, covering 99.6 % of India’s exports.
- EFTA countries will invest $100 billion in India over the next few years.
- It will facilitate technology access in areas like renewable energy, precision engineering and health sciences.

European Free Trade Association (EFTA)

It is a group of 4 countries – Iceland, Liechtenstein, Norway and Switzerland.
Establishment: In 1960 through the Stockholm Convention.
Aim: To promote free trade and economic integration among its members.
Relationship with EU: EFTA operates alongside the European Union (EU), with all members participating in the European Single Market and the Schengen Area but not in the EU Customs Union.