FIN-A-THON’24

“Shaping tomorrow’s world through geopolitics & trade”

 Problem Statement - 8
Presented by: Dr. Ajay Massand
Countries involved: India, Switzerland, Liechtenstein

Preamble

The Government of India, the Government of Switzerland, and the Government of

Liechtenstein, hereinafter referred to individually as a “Party” and collectively as “the Parties”:

BUILDING upon the historic ties and friendship between the Parties, and progress made by
both the Parties during their previous bilateral negotiations;

RESOLVING to strengthen their economic relations, further liberalise and expand trade and
investment, enhance economic growth, create opportunities for workers and business,
improving living standards, and promote sustainable growth;

DECIDING to establish an agreement that will ultimately lead to the conclusion of a fuller Free
Trade Agreement (FTA);

FURTHER RESOLVING that the fuller Free Trade Agreement (FTA) will aim to promote
further economic integration to liberalise trade and investment;

RECOGNISING the need for a balanced trade agreement that encourages trade and investment
flows that will benefit the economies of both the Parties;

ACKNOWLEDGING the important role and contribution of business in expanding trade

between the Parties, and the need to further promote and facilitate cooperation and utilisation
of the greater business opportunities provided by this Agreement;

DESIRING to explore new areas of economic cooperation and develop appropriate measures
for closer economic cooperation between the Parties;
RECOGNISING their right to regulate in order to meet national policy objectives, and
determining to preserve their flexibility in setting legislative and regulatory priorities to protect
legitimate public welfare objectives; and

REAFFIRM their commitment to work together, protect, shape, and strengthen the rules-based,
transparent, non-discriminatory, and inclusive multilateral trading system embodied by the
WTO;

HAVE AGREED, AS FOLLOWS:

CHAPTER 1
INITIAL PROVISIONS AND GENERAL DEFINITIONS

Article 1.1
Establishment of a Free Trade Area
The Parties, hereby establish a free trade area in accordance with the provisions of this Trade
Agreement.

Article 1.2
Objectives

1. The objectives of this Agreement are to:

(a) establish a framework for strengthening and enhancing the economic, trade and investment
relationship between the Parties;
(b) liberalise and promote trade in goods;
(c) liberalise and promote trade in services;
(d) improve the efficiency and competitiveness of their manufacturing and services sectors and
to expand trade and investment between the Parties; and
(e) facilitate, enhance and explore new areas of economic cooperation and develop appropriate
measures for closer economic cooperation between the Parties.
 Article 1.3
General Definitions

1. For the purposes of this Agreement, unless otherwise specified:

(a) Agreement means the Free Trade Agreement (FTA) involving India, Switzerland and
Liechtenstein;
(b) Anti-Dumping Agreement means the Agreement on Implementation of Article VI of GATT
1994, set out in Annex 1A to the WTO Agreement;
(d) Customs Valuation Agreement means the Agreement on Implementation of Article VII of
GATT 1994, set out in Annex 1A of the WTO Agreement;
(e) days means calendar days, including weekends and holidays;
(f) GATS means the General Agreement on Trade in Services, set out in Annex 1B of the WTO
Agreement;
(g) GATT 1994 means the General Agreement on Tariffs and Trade 1994, set out in Annex 1A
of the WTO Agreement;
(h) goods means any merchandise, product, article or material;
(k) Joint Committee means the Joint Committee established pursuant to Article 12.1
(Establishment of the Joint Committee – Administrative and Institutional Provisions);
(l) measure means any measure by a Party, whether in the form of a law, regulation, rule,
procedure, decision, administrative action, or any other form;
(s) territory means:
(i) in respect of India, Switzerland and Liechtenstein;
(A) India - India's mainland extends from Kashmir in the north to Kanyakumari in the south
and Arunachal Pradesh in the east to Gujarat in the west. It’s official territory extends from the
coast to 12 nautical miles (about 21.9 km) into the sea;
(B) Switzerland - Extending across the north and south side of the Alps in west-central Europe,
Switzerland encompasses diverse landscapes and climates across its 41,285 square kilometres
(15,940 sq mi);
(C)Liechtenstein - The official territory of Liechtenstein extends from the Rhine River in the
west to the borders of Austria and Switzerland in the east and south;
(u) WTO Agreement means the Marrakesh Agreement Establishing the World Trade
Organization, done at Marrakesh on 15 April 1994.
 Article 1.4
Relation to Other Agreements

1. The Parties affirm their rights and obligations with respect to each other under the WTO
Agreement and other existing agreements to which both the Parties are party.
2. In the event of any inconsistency between this Agreement and any other agreement to which
the Parties are party, the Parties shall immediately consult with each other with a view to finding
a mutually satisfactory solution.

CHAPTER 2
TRADE IN GOODS

Article 2.1
Definitions

For the purposes of this Chapter:

(a) consular transactions means requirements that goods of a Party intended for export to the
territory of the other Party must first be submitted to the supervision of the consul of the
importing Party in the territory of the exporting Party for the purpose of obtaining consular
invoices or consular visas for commercial invoices, certificates of origin, manifests, shippers’
export declarations, or any other customs documentation required on or in connection with
importation;
(b) customs duty means any duty or charge of any kind imposed on or in connection with the
importation of a good, and any cess, surtax or surcharge imposed in connection with such
importation, but does not include any:
(i) charge equivalent to an internal tax imposed consistently with Article III:2 of GATT 1994;
(ii) fee or other charge in connection with the importation commensurate with the cost of
services rendered; or
(iii) anti-dumping or countervailing duty applied pursuant to the laws of a Party and applied
consistently with the provisions of Article VI of GATT 1994, the Anti-Dumping Agreement;
(c) goods of a Party means domestic products as these are understood in GATT 1994 or such
goods as the Parties may agree, and includes originating goods of a Party.
 Article 2.4
National Treatment

Each Party shall accord national treatment to the goods of the other Party in accordance with
Article III of GATT 1994, which is hereby incorporated into and made part of this Agreement,
mutatis mutandis.

Article 2.5
Administrative Fees and Formalities

1. Each Party shall ensure, in accordance with Article VIII of GATT 1994, that all fees and
charges of whatever character (other than customs duties, charges equivalent to an internal tax
or other internal charges applied consistently with Article III of GATT 1994, and anti-dumping
and countervailing duties) imposed on or in connection with importation or exportation are
limited in amount to the approximate cost of services rendered and do not represent an indirect
protection to domestic goods or a taxation of imports or exports for fiscal purposes.
2. Neither Party shall require consular transactions, including any related fees and charges, in
connection with the importation of any good of the other Party.
3. Each Party shall make publicly available on the internet a current list of the fees and charges
it imposes in connection with importation or exportation.

Article 2.6
Customs Valuation

Each Party shall determine the customs value of goods traded between the Parties in accordance
with Article VII of GATT 1994 and the Customs Valuation Agreement.
 Article 2.7
Classification of Goods

The classification of goods traded between the Parties shall be in conformity with the
Harmonized System.

Article 2.8
Import and Export Restrictions

Unless otherwise provided in this Agreement, neither Party shall adopt or maintain any
prohibition or restriction on the importation of any good of the other Party or on the exportation
or sale for export of any good destined for the territory of the other Party, except in accordance
with Article XI of GATT 1994, and to this end Article XI of GATT 1994, is incorporated into
and made part of this Agreement, mutatis mutandis.

Article 2.9
Application of Non-Tariff Measures

1. A Party shall not adopt or maintain any non-tariff measure on the importation of any good
of the other Party or on the exportation of any good destined for the territory of the other
Party, except in accordance with the WTO Agreement or this Agreement.

2. Each Party shall ensure the transparency of its non-tariff measures permitted in paragraph 1
and shall ensure that any such measures are not prepared, adopted or applied with the view to,
or with the effect of, creating unnecessary obstacles to trade between the Parties.

Article 2.11
Agricultural Cooperation
The Parties shall undertake cooperation and capacity building activities in areas related to
agriculture and agricultural trade for mutual benefit.
 CHAPTER 3
TRADE REMEDIES

Section A
Anti-dumping, Subsidies and Countervailing Measures

Article 3.1
Anti-Dumping Measures

Nothing in this Agreement affects the rights and obligations of the Parties under Article VI of
GATT 1994 and the Anti-Dumping Agreement with regard to the application of anti-dumping
measures.

Article 3.2
Subsidies and Countervailing Measures

Nothing in this Agreement affects the rights and obligations of the Parties under Article VI of
GATT 1994 and the SCM Agreement with regard to the application of countervailing duty
measures.

Article 3.3
Lesser Duty Rule

If a Party takes a decision to impose anti-dumping or countervailing duty, it may consider

applying a duty less than the margin of dumping or the amount of the subsidy, as relevant,
where such lesser duty would be adequate to remove the injury to the domestic industry in
accordance with the Party’s laws and regulations.
 Section B
Global Safeguard Measures

Article 3.4
Global Safeguard Measures

Nothing in this Agreement affects the rights and obligations of the Parties under Article XIX of
GATT 1994, the Safeguards Agreement and the Agreement on Agriculture.

Section C
Bilateral Safeguard Measures

Article 3.6
Application of a Bilateral Safeguard Measure
1. If as a result of the reduction or elimination of a customs duty under this Agreement, an
originating good of the other Party is being imported into the territory of a Party in such
increased quantities, in absolute terms or relative to domestic production, and under such
conditions as to be a cause of serious injury, or threat thereof, to a domestic industry producing
a like or directly competitive good, the Party may during the transition period, apply one of the
following bilateral safeguard measures:
(a) suspend the further reduction of any rate of customs duty on the good provided for under
this Agreement; or

(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:

(i) the most-favoured-nation applied rate of customs duty on the good in effect at the time the
bilateral safeguard measure is applied; and

(ii) the most-favoured-nation applied rate of customs duty on the good in effect on the day
immediately preceding the date of entry into force of this Agreement.
2. Neither Party shall apply or maintain a bilateral safeguard measure or provisional bilateral
safeguard measure under this Chapter to any good imported under a tariff rate quota established
by the Party under this Agreement.

CHAPTER 11
GENERAL PROVISIONS AND EXCEPTIONS

Article 11.3
Direct Taxation Measures

1. Nothing in this Agreement shall apply to any direct taxation measure.

2. Nothing in this Agreement shall affect the rights and obligations of either Party under any
direct tax convention. In the event of any inconsistency between this Agreement and any direct
tax convention, the direct tax convention shall prevail over this Agreement.

Article 11.4
Measures to Safeguard the Balance of Payments

1. Where a Party is in serious balance of payments and external financial difficulties or under
threat thereof, it may:
(a) in the case of trade in goods, in accordance with GATT 1994 and the WTO Understanding
on the Balance-of-Payments Provisions of the GATT 1994, adopt restrictive import
measures;
(b) in the case of trade in services, adopt or maintain restrictions on trade in services on which
it has undertaken specific commitments, including on payments or transfers for
transactions related to such commitments. It is recognised that particular pressures on
the balance of payments of a Party in the process of economic development may
necessitate the use of restrictions on trade in services to ensure, inter alia, the
maintenance of a level of financial reserves adequate for the implementation of its
programme of economic development.
2. Restrictions adopted or maintained under paragraph 1(b) shall:
(a) be consistent with the IMF Articles of Agreement;
(b) avoid unnecessary damage to the commercial, economic and financial interests of the other
Party;
(c) not exceed those necessary to deal with the circumstances described in paragraph 1;
(d) be temporary and be phased out progressively as the situation specified in paragraph 1
improves; and
(e) be applied on a non-discriminatory basis such that the other Party is treated no less
favourably than any country that is not a party to this Agreement.
3. In determining the incidence of such restrictions, the Parties may give priority to economic
sectors which are more essential to their economic development. However, such
restrictions shall not be adopted or maintained for the purpose of protecting a particular
sector.
4. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein,
shall be notified promptly to the other Party from the date such measures are taken.
5. To the extent that it does not duplicate the process under the WTO or the International
Monetary Fund, the Party adopting or maintaining any restrictions under paragraph 1
shall promptly commence consultations with the other Party from the date of
notification in order to review the measures adopted or maintained by it.
Article 11.5
Disclosure of Information

1. Nothing in this Agreement shall be construed to require either Party to furnish or allow
access to information the disclosure of which it considers:
(a) would be contrary to the public interest;
(b) is contrary to any of its legislation including but not limited to those protecting personal
privacy or the financial affairs and accounts of individual customers of financial
institutions; (c) would impede law enforcement; or
(d) would prejudice legitimate commercial interests of particular enterprises, public or
private.
 Article 11.6
Confidentiality

Each Party shall, subject to its laws and regulations, maintain the confidentiality of
information provided in confidence by the other Party pursuant to this Agreement. Nothing
in this Article shall prevent a Party from using or disclosing the confidential information
to the extent that it may be necessary in the context of judicial or quasi-judicial proceedings
or where a Party is authorised or required to disclose or use the information under its laws
and regulations, in which case the Party that has received the information shall notify the
other Party of the release or disclosure where possible.

Article 11.7
Economic Cooperation

The Parties acknowledge the importance of cooperation in implementing this Agreement

and enhancing its benefits. The Parties recognise that cooperation activities undertaken
pursuant to this Agreement shall seek to complement and build upon existing agreements
or arrangements between the Parties.

Article 11.8
Financial Provisions
Any cooperative activities envisaged or undertaken under this Agreement shall be subject
to the availability of resources and to the laws, regulations and policies of the Parties. Costs
of cooperative activities shall be borne in such manner as may be mutually determined
from time to time between the Parties.
 CHAPTER 12
ADMINISTRATIVE AND INSTITUTIONAL PROVISIONS

Article 12.1
Establishment of the Joint Committee

The Parties hereby establish a Joint Committee, which shall be composed of government
representatives of the Parties at the level of senior officials or, when agreed by the Parties,
at the level of Ministers.

Article 12.2
Meeting of the Joint Committee

1. The Joint Committee shall meet within 1 year of entry into force of this Agreement.
Thereafter, it shall meet every 2 years unless the Parties agree otherwise, to consider any
matter relating to this Agreement.
2. Meetings conducted pursuant to paragraph 1 shall be held alternately in the territories of
the Parties, unless the Parties agree otherwise. The Party hosting a session of the Joint
Committee shall provide any necessary administrative support for such session.
3. Upon request by a Party, the Joint Committee and any subcommittee, subsidiary body or
working group established under this Agreement may hold special sessions at a mutually
convenient date without undue delay.
4. Each Party shall be responsible for the composition of its delegation.

Article 12.3
Decision-making

1. All decisions of the Joint Committee shall be made by mutual agreement of the Parties.
2. All decisions of the subcommittees, subsidiary bodies or working groups established
under this Agreement shall be made by mutual agreement of the Parties.
 Article 12.4
Functions of the Joint Committee

1. The Joint Committee shall:

(a) assess, review and monitor the implementation and operation of this Agreement;
(b) consider any matter relating to the implementation or operation of this Agreement;
(c) consider ways to further trade and investment between the Parties, including improving
market access;
(d) consider and recommend to the Parties any proposal to amend this Agreement;
(e) supervise and coordinate the work of all subcommittees, subsidiary bodies and working
groups established under this Agreement;
(g) consider any other matter that may affect the operation of this Agreement.
2. The Joint Committee may:
(a) adopt decisions or make recommendations as envisaged by this Agreement;
(c) as appropriate, issue interpretations of this Agreement;1
(d) establish, refer matters to, or assign tasks to, or delegate functions to, or consider
matters raised by any subcommittee, subsidiary body, or working group;
(e) restructure, reorganise or dissolve any subcommittee, subsidiary body or working group
established under this Agreement, in order to improve the functioning of this Agreement;
(f) unless otherwise provided in this Agreement, determine the functions of the
subcommittees, subsidiary bodies, or working groups established under this Agreement;
(h) carry out any other such functions as may be agreed by the Parties.

Article 12.5
Rules of Working Procedures

1. The Joint Committee shall establish its own rules of working procedures at its first meeting.
The Joint Committee, if necessary, may also establish its own financial arrangements.
2. Any subcommittee, subsidiary body or working group established under this Agreement
may establish its own rules of working procedures for its work.
 3. Unless otherwise provided in this Agreement, the Joint Committee and any subcommittee,
subsidiary body or working group established under this Agreement shall carry out its work
through whatever means as appropriate, which may include through electronic means.
4. The Joint Committee and any subcommittee, subsidiary body or working group established
under this Agreement, shall be co-chaired by representatives from both the Parties.

Article 12.6
Communications

1. Each Party shall designate a contact point to receive and facilitate official communications
between the Parties on any matter relating to this Agreement, except for matters for which
this Agreement establishes a specific contact point.
2. All official communications in relation to this Agreement shall be in the English language.
3. Each Party shall promptly notify the other Party, in writing, of any changes to its overall
contact point or any other contact point.

CHAPTER 14
FINAL PROVISIONS

Article 14.1
Annexes, Appendices and Footnotes

The Annexes, Appendices and footnotes to this Agreement shall constitute an integral part of
this Agreement. Where a side letter to this Agreement explicitly provides that it is an integral
part of this Agreement, it shall constitute an integral part of this Agreement.

Article 14.2
Amendments to International Agreements
If any international agreement, or a provision therein, that has been referred to in this
Agreement or incorporated into this Agreement is amended, the Parties shall, at the request of
either Party, consult on whether to amend this Agreement.
 Article 14.3
Amendments

The Parties may agree, in writing, to amend this Agreement. Such amendments shall enter into
force 60 days after the date on which the Parties exchange written notifications confirming that
they have completed their respective domestic requirements, including internal legal
procedures, necessary for entry into force of the amendments, or on such other date as the
Parties agree.

Article 14.6
Termination
A Party may terminate this Agreement by giving the other Party notice in writing. Such
termination shall take effect 6 months after the date of the notification, or on such other date
as the Parties may agree.

Article 14.7
Entry into Force

This Agreement shall enter into force 30 days after an exchange of written notifications,
certifying completion of the necessary domestic requirements, including internal legal
procedures, of each Party or on such other date as the Parties may agree. IN WITNESS
WHEREOF, the undersigned, being duly authorised by their respective Governments, have
signed this Agreement.
 Glossary

Article VI of GATT, 1994 (Annex 1A of WTO)

Anti-dumping and Countervailing Duties

1. The contracting parties recognize that dumping, by which products of one country are
introduced into the commerce of another country at less than the normal value of the products,
is to be condemned if it causes or threatens material injury to an established industry in the
territory of a contracting party or materially retards the establishment of a domestic industry.
For the purposes of this Article, a product is to be considered as being introduced into the
commerce of an importing country at less than its normal value, if the price of the product
exported from one country to another
(a) is less than the comparable price, in the ordinary course of trade, for the like product when
destined for consumption in the exporting country, or,
(b) in the absence of such domestic price, is less than either
(i) the highest comparable price for the like product for export to any third country in the
ordinary course of trade, or
(ii) the cost of production of the product in the country of origin plus a reasonable addition for
selling cost and profit.
Due allowance shall be made in each case for differences in conditions and terms of sale, for
differences in taxation, and for other differences affecting price comparability.

Article VII of GATT, 1994

Valuation for Customs Purposes

1. The contracting parties recognize the validity of the general principles of valuation set forth
in the following paragraphs of this Article, and they undertake to give effect to such principles,
in respect of all products subject to duties or other charges or restrictions on importation and
exportation based upon or regulated in any manner by value. Moreover, they shall, upon a
request by another contracting party review the operation of any of their laws or regulations
relating to value for customs purposes in the light of these principles. The CONTRACTING
PARTIES may request from contracting parties reports on steps taken by them in pursuance of
the provisions of this Article.
2. (a) The value for customs purposes of imported merchandise should be based on the actual
value of the imported merchandise on which duty is assessed, or of like merchandise, and
should not be based on the value of merchandise of national origin or on arbitrary or fictitious
values.
(b) “Actual value” should be the price at which, at a time and place determined by the legislation
of the country of importation, such or like merchandise is sold or offered for sale in the ordinary
course of trade under fully competitive conditions. To the extent to which the price of such or
like merchandise is governed by the quantity in a particular transaction, the price to be
considered should uniformly be related to either (i) comparable quantities, or (ii) quantities not
less favourable to importers than those in which the greater volume of the merchandise is sold
in the trade between the countries of exportation and importation.
(c) When the actual value is not ascertainable in accordance with sub-paragraph (b) of this
paragraph, the value for customs purposes should be based on the nearest ascertainable
equivalent of such value.
3. The value for customs purposes of any imported product should not include the amount of
any internal tax, applicable within the country of origin or export, from which the imported
product has been exempted or has been or will be relieved by means of refund.

Article III of GATT, 1994

National Treatment on Internal Taxation and Regulation

1. The contracting parties recognize that internal taxes and other internal charges, and laws,
regulations and requirements affecting the internal sale, offering for sale, purchase,
transportation, distribution or use of products, and internal quantitative regulations requiring
the mixture, processing or use of products in specified amounts or proportions, should not be
applied to imported or domestic products so as to afford protection to domestic production.
2. The products of the territory of any contracting party imported into the territory of any other
contracting party shall not be subject, directly or indirectly, to internal taxes or other internal
charges of any kind in excess of those applied, directly or indirectly, to like domestic products.
Moreover, no contracting party shall otherwise apply internal taxes or other internal charges to
imported or domestic products in a manner contrary to the principles set forth in paragraph 1.
4. The products of the territory of any contracting party imported into the territory of any other
contracting party shall be accorded treatment no less favourable than that accorded to like
products of national origin in respect of all laws, regulations and requirements affecting their
internal sale, offering for sale, purchase, transportation, distribution or use. The provisions of
this paragraph shall not prevent the application of differential internal transportation charges
which are based exclusively on the economic operation of the means of transport and not on
the nationality of the product.
5. No contracting party shall establish or maintain any internal quantitative regulation relating
to the mixture, processing or use of products in specified amounts or proportions which
requires, directly or indirectly, that any specified amount or proportion of any product which is
the subject of the regulation must be supplied from domestic sources. Moreover, no contracting
party shall otherwise apply internal quantitative regulations in a manner contrary to the
principles set forth in paragraph.
Interpretative Note -Ad Article III from Annex I - Any internal tax or other internal charge, or
any law, regulation or requirement of the kind referred to in paragraph 1 which applies to an
imported product and to the like domestic product and is collected or enforced in the case of
the imported product at the time or point of importation, is nevertheless to be regarded as an
internal tax or other internal charge, or a law, regulation or requirement of the kind referred to
in paragraph 1, and is accordingly subject to the provisions of Article III.

Article XI of GATT, 1994

General Elimination of Quantitative Restrictions

1. No prohibitions or restrictions other than duties, taxes or other charges, whether made
effective through quotas, import or export licences or other measures, shall be instituted or
maintained by any contracting party on the importation of any product of the territory of any
other contracting party or on the exportation or sale for export of any product destined for the
territory of any other contracting party.
2. The provisions of paragraph 1 of this Article shall not extend to the following:
(a) Export prohibitions or restrictions temporarily applied to prevent or relieve critical shortages
of foodstuffs or other products essential to the exporting contracting party;
(b) Import and export prohibitions or restrictions necessary to the application of standards or
regulations for the classification, grading or marketing of commodities in international trade;
(c) Import restrictions on any agricultural or fisheries product, imported in any form, necessary
to the enforcement of governmental measures which operate:
(i) to restrict the quantities of the like domestic product permitted to be marketed or produced,
or, if there is no substantial domestic production of the like product, of a domestic product for
which the imported product can be directly substituted; or
(ii) to remove a temporary surplus of the like domestic product, or, if there is no substantial
domestic production of the like product, of a domestic product for which the imported product
can be directly substituted, by making the surplus available to certain groups of domestic
consumers free of charge or at prices below the current market level; or
(iii) to restrict the quantities permitted to be produced of any animal product the production
of which is directly dependent, wholly or mainly, on the imported commodity, if the domestic
production of that commodity is relatively negligible. Any contracting party applying
restrictions on the importation of any product pursuant to subparagraph (c) of this paragraph
shall give public notice of the total quantity or value of the product permitted to be imported
during a specified future period and of any change in such quantity or value. Moreover, any
restrictions applied under
(i) above shall not be such as will reduce the total of imports relative to the total of domestic
production, as compared with the proportion which might reasonably be expected to rule
between the two in the absence of restrictions. In determining this proportion, the contracting
party shall pay due regard to the proportion prevailing during a previous representative period
and to any special factors which may have affected or may be affecting the trade in the product
concerned.

Article XIX of GATT, 1994

Emergency Action on Imports of Particular Products

1. (a) If, as a result of unforeseen developments and of the effect of the obligations incurred by
a contracting party under this Agreement, including tariff concessions, any product is
 being imported into the territory of that contracting party in such increased quantities
and under such conditions as to cause or threaten serious injury to domestic producers
in that territory of like or directly competitive products, the contracting party shall be
free, in respect of such product, and to the extent and for such time as may be necessary
to prevent or remedy such injury, to suspend the obligation in whole or in part or to
withdraw or modify the concession.
(b) If any product, which is the subject of a concession with respect to a preference, is being
imported into the territory of a contracting party in the circumstances set forth in sub-paragraph
(a) of this paragraph, so as to cause or threaten serious injury to domestic producers of like or
directly competitive products in the territory of a contracting party which receives or received
such preference, the importing contracting party shall be free, if that other contracting party so
requests, to suspend the relevant obligation in whole or in part or to withdraw or modify the
concession in respect of the product, to the extent and for such time as may be necessary to
prevent or remedy such injury.
2. Before any contracting party shall take action pursuant to the provisions of paragraph 1 of
this Article, it shall give notice in writing to the CONTRACTING PARTIES as far in advance
as may be practicable and shall afford the CONTRACTING PARTIES and those contracting
parties having a substantial interest as exporters of the product concerned an opportunity to
consult with it in respect of the proposed action. When such notice is given in relation to a
concession with respect to a preference, the notice shall name the contracting party which has
requested the action. In critical circumstances, where delay would cause damage which it would
be difficult to repair, action under paragraph 1 of this Article may be taken provisionally without
prior consultation, on the condition that consultation shall be effected immediately after taking
such action.
3. (a) If agreement among the interested contracting parties with respect to the action is not
reached, the contracting party which proposes to take or continue the action shall,
nevertheless, be free to do so, and if such action is taken or continued, the affected
contracting parties shall then be free, not later than ninety days after such action is taken,
to suspend, upon the expiration of thirty days from the day on which written notice of
such suspension is received by the CONTRACTING PARTIES, the application to the
trade of the contracting party taking such action, or, in the case envisaged in paragraph
1 (b) of this Article, to the trade of the contracting party requesting such action, of such
 substantially equivalent concessions or other obligations under this Agreement the
suspension of which the CONTRACTING PARTIES do not disapprove.
(b) Notwithstanding the provisions of subparagraph (a) of this paragraph, where action is taken
under paragraph 2 of this Article without prior consultation and causes or threatens
serious injury in the territory of a contracting party to the domestic producers of
products affected by the action, that contracting party shall, where delay would cause
damage difficult to repair, be free to suspend, upon the taking of the action and
throughout the period of consultation, such concessions or other obligations as may be
necessary to prevent or remedy the injury.
 Core Issue of India-EFTA FTA

While India’s Ministry of External Affairs leads diplomatic initiatives and the Ministry of
Commerce manages trade policies, increasing cooperation between the two ministries has been
crucial for advancing India’s economic engagements globally. Following this model, India has
entered advanced negotiations with the Principality of Liechtenstein and the Swiss
Confederation as part of broader discussions with the European Free Trade Association
(EFTA).

The India-Liechtenstein-Switzerland Free Trade Agreement (FTA) is poised to reshape

economic relations, promoting bilateral trade and investment. This partnership, framed under
the EFTA, reflects a shared commitment to deepening ties in areas of economic growth,
sustainable development, and technological innovation.

Economic Cooperation and Investment: Switzerland and Liechtenstein have committed to

increasing their foreign direct investment (FDI) in India by $50 billion over the next decade,
aiming to enhance sectors such as financial services, clean energy, and advanced
manufacturing. Both countries see this FTA as an opportunity to strengthen their competitive
positions in India’s rapidly growing market.

Sustainable Development and Regulatory Frameworks: The FTA includes comprehensive

chapters on sustainable development, human rights, and labour standards, with a focus on
aligning economic growth with environmental protection. This reflects the principality’s and
Switzerland’s strong advocacy for sustainable trade practices, in line with international
environmental agreements.

Challenges in Intellectual Property Rights (IPR): A major point of contention in the

negotiations has been the intellectual property regime, particularly concerning pharmaceutical
patents. Switzerland and Liechtenstein, both home to major pharmaceutical industries, have
sought stronger protections, including data exclusivity, while India has maintained its stance
on affordable access to generic medicines.

FTA Timeline and Trade Facilitation: With talks progressing steadily, the FTA is expected
to streamline trade by simplifying customs procedures, reducing tariffs on key industrial goods,
and creating more predictable regulatory frameworks. The agreement is seen as a cornerstone
of India’s strategy to deepen its economic ties with Europe.

TARRIF RATES

Product Tariff Rate Country

Switzerland to
Wine (CIF < 5 USD) 150 India
Switzerland to
Wine (CIF 5-15 USD) 100 India
Switzerland to
Wine (CIF > 15 USD) 75 India
India to
Live horses 0 Switzerland
India to
Live asses 0 Switzerland
India to
Meat of bovine animals 85 Switzerland
India to
Poultry meat 0 Switzerland
India to
Bulbs, tubers, etc. 0 Switzerland
India to
Chicory plants 0 Switzerland
India to
Roses (wild stock) 0 Switzerland
India to
Vegetable seedlings 0 Switzerland
India to
Fresh cut flowers (roses) 0 Switzerland
India to
Fresh cut flowers (carnations) 0
 Switzerland

India to
Garlic 0 Switzerland
India to
Onions 0 Switzerland
India to
Leeks 0 Switzerland

NOTE: Tariff rates that apply to Switzerland and those that apply to India on from Switzerland
are the same terms that apply to all imports and exports by Lichtenstein

References
[Link]