A message by Prime Minister Narendra Modi as India signs Trade and Economic Participation Agreement (TEPA) with EFTA. pic.twitter.com/lwZDuvVAAC
— ANI (@ANI) March 10, 2024
Talks for an FTA between India and the EFTA states began in in 2008, and were resumed in 2023, after a decade-long break. The 14-chapter treaty was concluded after 21 rounds of negotiations, including specific chapters on investment, rules of origin, intellectual property rights and sustainable development that were particularly tricky. A breakthrough came in December 2023, as the two sides agreed on putting the investment goals into a separate chapter, and they were able to conclude the agreement, which was cleared by the Union Cabinet on March 7.
In a written message, Prime Minister Narendra Modi called the TEPA a “win-win” agreement for all nations, and said its signing marked a “watershed moment” in ties between India and the European Trading bloc.
Controversial pharma clause
In particular, Swiss negotiators in the EFTA team had bargained hard for a clause on “data exclusivity” for pharma, which was criticised by health activists who claimed that it would, over time, increase the burden on Indian manufacturers of life-saving generic medicines. Indian negotiators rejected its inclusion in the agreement, although the appendix of the TEPA chapter on Intellectual Property Review (IPR) includes a review of the regulatory mechanisms attached to it.
“We would have loved to have included that clause,” State Secretary for Economic Affairs Helene Budliger told The Hindu in an interview on Sunday, calling IPR a “bread and butter issue” for the Swiss economy that depends heavily on research and development revenue. Ms. Budliger said that India had agreed to meet EFTA states “half-way” on the IPR chapter, and rejected the allegations by health activists, including Medecins Sans Frontiers (MSF), that the EFTA states had tried to bully India on the clause. “How could a country of nine million bully a G-20 country of 1.4 billion? We negotiated our position with Indian negotiators, who are very good, “ she added.
However, the Geneva-based MSF (otherwise known as Doctors without Borders) said that even the review mechanism established under the TEPA agreement could be a problem for patient rights and access to medicines. “The Joint EFTA-India Committee comprising senior government officials will be a form of continuous pressure on India to adopt TRIP-plus [extra measures] like data exclusivity,” MSF Access Campaign’s regional head Leena Menghaney told The Hindu.
The concluded TEPA is expected to increase trade in sectors like pharmaceuticals, medical devices, food products and processing as well as R&D in many areas, raising it from current levels of about $25 billion, with a massive trade deficit of $18.58 billion.
(with inputs from Jacob Koshy)
Published – March 10, 2024 12:42 pm IST
Source link : https://www.thehindu.com/news/national/india-european-free-trade-association-ink-free-trade-agreement/article67935003.ece
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Publish date : 2024-03-10 08:00:00
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