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A free trade pact is likely to be concluded between India and the European Free Trade Association (EFTA) by early 2009. The EFTA countries include Iceland, Liechtenstein, Norway and Switzerland.
Besides trade in industrial and agricultural goods and services, the area of focus for implementation would be intellectual property rights (IPRs) regime. The EFTA countries and India had established a joint study group to study prospects of a broad-based trade and investment agreement. According to the joint study report, in January, 2008, it was agreed to start negotiation for a free trade agreement.
Switzerland minister of economy Doris Leuthard, who is leading a business delegation to India, said: “Both the economies are different, but we share common values. This can lead us to a better engagement in trade. In industrial goods India is competitive in some areas, while we are competitive in other areas. In agriculture products we do not grow tropical products which India grows. Our competitiveness is in wines and some processed food. In the services sector, India is a leader in IT, while we have technological advancements in other areas like construction.”
India's trade minister Kamal Nath said geographical indication will also find a place in the proposed India-EFTA pact. “We also need a greater engagement of Swiss SMEs in our country.”
India-EFTA bilateral trade increased by 9.3% to $7.4 billion in 2005-06. Though India's exports to EFTA reduced by over 3%, imports from EFTA increased by 11%. Two way trade between India and Switzerland grew from 1.56 billion Swiss Francs in 2004 to 3.26 billion Swiss Francs in 2007, and has doubled in volume in just three years. Swiss exports to India increased to 2,310 million Swiss Francs in 2007, a rise of 22.4% over 2006.
India's exports to Switzerland is only 952 million Swiss Francs, which is lower than that latter's exports to India. In 2007, India's exports to Switzerland was registered growing at a higher rate than its imports from Switzerland. (Source: Financial Express)
May 9, 2008
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