India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) crucially includes a provision allowing India to withdraw tariff concessions granted to EFTA nations if they fail to meet the $100 billion investment obligation. The agreement mandates a 15-year investment flow timeline, with staggered targets to be met in the first decade.
Should EFTA fall short of these commitments after a grace period, India can initiate a three-stage consultation process before considering revocation of duties. The agreement stipulates that any suspension of concessions must be proportional and temporary, focusing on regular monitoring by a sub-committee to review progress.
While EFTA countries maintain low tariffs, India’s duty reductions will unfold over 10 years, excluding sensitive items like dairy and coal. The agreement emphasizes facilitating investments by ensuring a conducive climate and risk assessment.
Notably, specific timelines for duty cuts on various goods, such as coal and agricultural products, offer insight into the phased implementation of tariff adjustments. This strategic move underscores India’s commitment to fostering a robust trade environment under the TEPA framework, signaling a balanced approach to enforcing trade obligations.
