Article:
A recent virtual gathering saw an Indian Minister and his Swiss counterpart deliberating on various matters like trade, bilateral investment treaties, and multilateral forums. The central themes discussed primarily revolved around the India-EFTA Trade & Economic Partnership Agreement (TEPA) negotiations and the India-Switzerland Bilateral Investment Treaty (BIT). Historical aspects and evolving dynamics of India-Switzerland relations were also discussed.
India-EFTA Trade & Economic Partnership Agreement
Both Ministers expressed the shared intention to progress the negotiations surrounding the India-EFTA Trade & Economic Partnership Agreement (TEPA). The European Free Trade Association (EFTA) comprises Iceland, Liechtenstein, Norway, and Switzerland, who are not members of the European Union (EU). In parallel, India is in talks with the EU for a separate trading agreement, termed the India-EU Broad-based Trade and Investment Agreement.
The proposed agreement will encompass various sections including trade in goods and services, investments, trade facilitation, customs cooperation, protection of intellectual property, and public procurement.
India-Switzerland Bilateral Investment Treaty
The ongoing discussions regarding the India-Switzerland BIT also figured prominently in the meeting. BITs are essentially pacts between two countries with a focus on protecting mutual investments made by investors from both nations.
Support in Multilateral Forums
The Indian Minister sought Switzerland’s backing for the collective proposal put forth by India and South Africa within the World Trade Organization (WTO) for a TRIPS waiver. The two nations have urged the WTO to temporarily suspend intellectual property (IP) rights relating to Covid-19 to permit equitable distribution of vaccines and pandemic-controlling technology. A provisional prohibition would facilitate more extensive production instead of limiting manufacturing to a small number of patent holders.
Background of India-Switzerland Relations
India and Switzerland have enjoyed a harmonious relationship based on mutual values like democracy and rule of law since Indian Independence. A Treaty of Friendship between the two nations was inked in New Delhi in 1948.
Economic Relations between India and Switzerland
Data from EXIM Bank shows that Switzerland held the position of being the 11th largest trading partner for India in 2018-19. The Alpine nation invested around USD 4.781 billion in India between April 2000 to September 2019, positioning it as the 12th largest investor and accounting for about 1.07% of total FDI in India during this timeframe.
Science and Technology Cooperation
In 2003, when the Swiss President visited India, an inter-governmental Agreement on Technical and Scientific Cooperation was signed. This agreement gave rise to the Indo-Swiss Joint Research Programme (ISJRP) launched in 2005.
Skill Training Collaborations
A variety of Institutes from both countries have teamed up to provide top-notch skill training in India. Some examples include the Bharatiya Skill Development Campus and University, the Indo-Swiss Centre of Excellence in Pune, and the Vocational Training Center in Andhra Pradesh.