Negotiations between India and the European Free Trade Association (EFTA) on a crucial trade deal have hit a roadblock, primarily due to Switzerland’s apprehensions over mobility and intellectual property rights (IPR). The 20th round of talks, held in Geneva and via video-conference from November 20-30, saw concerns raised by Switzerland, a member of the EFTA, regarding the mobility of Indian professionals and IPR.
Switzerland’s unease with the provisions related to the mobility of Indian professionals stems from its status as a Schengen visa framework member, despite not being part of the European Union. Intellectual property rights, crucial for many EFTA exports, particularly from Switzerland, have also become a sticking point in the negotiations.
The EFTA, comprising Iceland, Liechtenstein, Norway, and Switzerland, aims to finalize the Trade and Economic Partnership Agreement (TEPA) before India’s general election process begins in 2024. Talks, initiated in 2008, were put on hold in 2013 but resumed in 2016 and gained momentum this year. However, the recent Swiss concerns and a revised Indian proposal on market access have complicated the negotiations, despite significant progress in recent months.
While there is no official deadline for concluding the deal, both sides aim to sign TEPA early next year. Efforts are underway to address outstanding issues, with recent high-level visits from Norway’s trade minister and Switzerland’s state secretary for economic affairs to New Delhi. The talks covered various aspects, including trade in goods and services, rules of origin, IPR, trade and sustainable development, and more.
Both India and the EFTA are keen on achieving a balanced trade deal, considering the current trade imbalance favoring EFTA member states. The total trade between India and EFTA in 2021-22 was $27.23 billion, with a significant deficit for India.
