India-EFTA trade pact to come into force from Oct 1: Switzerland

The agreement was signed by both sides on March 10 last year.

On September 3, the Swiss Federal Council adopted the necessary amendments to the ordinances to implement the tariff concessions specified in the agreement, an official Swiss government release said today.

"For the first time, India has laid down legally binding provisions on trade and sustainable development in a free trade agreement," Switzerland said.

India has received an investment commitment of $100 billion in 15 years from the grouping under the agreement, while the former will allow several products at lower or zero duties.

The bloc committed an investment of $50 billion within 10 years of the implementation of the agreement and another $50 billion in the next five years. This would facilitate the creation of a million direct jobs in India.

Switzerland said that the agreement increases legal certainty and predictability for bilateral economic exchanges.

"It also improves access to the Indian market for Swiss goods and services. India grants Switzerland improved market access for 94.7 per cent of existing exports (2018-2023, excluding gold)," the release noted.

The pact, it said, also contains a provision in which the contracting parties confirm their rights and obligations under other international agreements.

These include agreements in the areas of trade, environment, social affairs and human rights.

"This is to ensure that neither the environmental and labour legislation of the partner countries nor international environmental and social laws are violated in connection with the agreement," the release added.

ALCHEMPro News Desk (DS)