Swiss Govt Initiates TEPA Approval in Parliament

The Swiss government has announced that it will start the parliamentary approval process for the Trade and Economic Partnership Agreement (TEPA) with India, which was signed on March 10, 2024. The TEPA is expected to boost trade and investment between Switzerland and India, as well as improve the legal framework and predictability for businesses.

The TEPA is a comprehensive free trade agreement between India and the four European Free Trade Association (EFTA) countries, namely Switzerland, Iceland, Norway and Liechtenstein. The agreement covers market access for goods, services and investment, as well as rules on intellectual property rights, trade remedies, trade facilitation, sustainable development and other areas.

According to the Swiss government, India currently imposes very high import tariffs on most products. Under the TEPA, India will eliminate or reduce customs tariffs on 95.3% of industrial imports from Switzerland (excluding gold) either immediately or with transition periods. Switzerland will also have tariff-free access to the Indian market for selected agricultural products after a transition period of up to 10 years.

The TEPA also includes provisions for enhancing intellectual property rights protection, especially with regard to legal certainty, patent procedures and the protection of ‘Swissness’. The agreement aims to create a level playing field for businesses and foster innovation and creativity.

The Swiss government said that the signing of the TEPA after 16 years of negotiations is a significant milestone in Swiss trade policy. It said that the agreement will strengthen the competitiveness of Swiss exports to India and provide opportunities for Swiss companies to expand their presence in the Indian market.

The Swiss government also said that it will initiate the parliamentary approval process for the TEPA immediately so that Switzerland can ratify the agreement by 2025 at the latest. The agreement will enter into force after ratification by all parties.

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