In a landmark move, Bharat has secured a groundbreaking clause in its trade pact with the European Free Trade Association or EFTA, including Iceland, Liechtenstein, Norway, and Switzerland. This clause guarantees Bharat the right to withdraw tariff concessions if the promised $100 billion investment fails to materialise within the next 15 years. This provision marks a significant departure from traditional trade deals signed by Bharat to safeguard its economic interests.
Insiders mentioned the agreement explicitly states Bharat retains the prerogative to revoke tariff concessions should the anticipated investments not come to fruition within the stipulated timeframe. The clause will undergo periodic reviews, with the first evaluation scheduled upon reaching a $10 billion investment milestone. This inclusion displays Bharat’s insistence on ensuring tangible benefits from its trade agreements, mainly in terms of job generation and economic acceleration.
“We have negotiated diligently to prioritise Bharat’s domestic market interests and ensure that the trade deal benefits our economy,” commented one official involved in the negotiations. Accentuating the importance of the deal, another source highlighted that duty-free market access is restricted to a mere 1.5 per cent of the total trade lines of the EFTA nations, further safeguarding Bharat’s market interests.
The Bharat-EFTA trade deal represents the latest in a series of significant trade agreements concluded by the Indian Government since early 2022. Preceded by bilateral pacts with the United Arab Emirates and Australia, this deal highlights Bharat’s proactive approach to expanding its trade relations on the global stage. Negotiations are underway for trade deals with prominent entities such as the European Union and the United Kingdom, alongside smaller nations like Oman and Peru.
Talks surrounding the Bharat-EFTA trade deal commenced as far back as January 2008 but had experienced prolonged delays. The signing of the agreement marks a culmination of extensive negotiations and represents a significant milestone in Bharat’s trade relations with the EFTA nations.
Recent government data underscores the importance of the EFTA region to Bharat’s trade landscape. In 2023, Bharat’s exports to the EFTA nations amounted to $1.87 billion, while imports surpassed $20.45 billion. Notably, Switzerland emerged as the dominant trading partner within the EFTA bloc, with imports primarily consisting of gold, among other commodities.
Key imports from the EFTA nations into Bharat include gold, silver, coal, pharmaceuticals, and dairy machinery, among others. In contrast, Bharat exports a diverse range of goods to these nations, including chemicals, iron and steel, precious stones, and sports goods. Switzerland stands out as Bharat’s principal trading partner within the EFTA, closely followed by Norway.
Despite repeated attempts, queries directed to the commerce secretary and spokesperson remained unanswered at the time of reporting. The development highlights Bharat’s proactive stance in securing favourable trade terms while underscoring the nation’s commitment to safeguarding its economic interests in international trade agreements.
