The successful conclusion of a comprehensive free trade agreement (FTA) between the European Free Trade Association EFTA (Iceland, Liechtenstein, Norway, Switzerland) and India is a significant milestone in Swiss trade policy. In its dispatch, the Federal Council commends and sets out the content of the agreement and places it in the overall context of Switzerland's relations with India. Parliament is expected to debate the dispatch in the upcoming winter or spring sessions.

Improved competitiveness for Swiss economic actors

India is now the world's most populous country. In particular, the growing middle class means that there is significant potential for growth. However, India still levies very high import duties on most products.

After 16 years of negotiations, Switzerland and the other EFTA states have succeeded in becoming the first European partners to conclude an FTA with India. When the agreement comes into force, 94.7 per cent of Switzerland's current exports to India will enjoy tariff relief, in some cases with transitional periods. This will strengthen the competitiveness of Swiss exports in India.

Investment promotion and sustainable development

The agreement includes a chapter on investment promotion and cooperation. For the first time in a free trade agreement, the EFTA states are committing themselves to various promotional activities with the aim of increasing investment in India and thereby creating jobs. India, for its part, is endeavouring to ensure a favourable investment climate.

EFTA is also the first partner with which India has agreed a comprehensive and legally binding chapter on trade and sustainable development. This chapter includes, among other things, a commitment not to deviate from applicable environmental and labour standards. It also establishes a specific sub-committee on trade and sustainable development.

The FTA between the EFTA states and India was signed in New Delhi on 10 March by Federal Councillor Guy Parmelin.

Free trade agreement with India: Federal Council submits dispatch to Parliament