Why is it in the News?

The new approach to intellectual property and investment through FTAs accepts an IP maximalist agenda of the United States Trade Representative; it threatens to upset the fine balance between public and private interests and push India away from essential innovations.

What is the Trade and Economic Partnership Agreement (TEPA)?

• The TEPA is a pact designed to foster trade and investment opportunities between India and the European Free Trade Association (EFTA).
• It endeavors to diminish or eliminate tariffs and non-tariff barriers across various product categories.

Objectives:

• Facilitate trade and investment by reducing tariffs and non-tariff barriers.
• Ensure equitable and transparent market access for service providers and investors.
• Enhance cooperation concerning the protection and enforcement of intellectual property rights.
• Streamline trade procedures, promote customs cooperation, and establish effective mechanisms for dispute resolution.

Coverage:

• The agreement encompasses 14 chapters, addressing key areas such as:
  • Trade in goods
  • Rules of origin
  • Intellectual property rights (IPRs)
  • Trade in services
  • Investment promotion and cooperation
  • Government procurement
  • Technical barriers to trade
  • Trade facilitation
• By addressing these comprehensive aspects, the TEPA seeks to bolster economic collaboration and foster mutually beneficial outcomes for both India and EFTA member states.

What is the European Free Trade Association (EFTA)?

• EFTA is an intergovernmental organization of four member countries that are not part of the European Union (EU): Iceland, Liechtenstein, Norway, and Switzerland.
• The association was set up in 1960 to promote closer economic cooperation and free trade in Europe.

How important is EFTA?

• Iceland, Liechtenstein, Norway, and Switzerland have a combined population of less than 14 million.
  • But their association punches above its weight in terms of trade figures.
• In 2021, EFTA was the tenth-largest trader in the world in merchandise trade and the eighth-largest in trade in services.

What is EFTA’s history?

• EFTA was established in 1960 by seven countries: Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom.
• Iceland and Liechtenstein joined EFTA in 1970 and 1991, respectively.
• Denmark, the UK, Portugal, Austria, and Sweden then left EFTA to join the EU between 1973 and 1995.