On October 1, India's Minister of Commerce & Industry hosted the 'Prosperity Summit', a high-level event in New Delhi attended by representatives from all the countries involved, to celebrate the agreement's entry into force.
Photo: European Free Trade Association (EFTA).
The Trade and Economic Partnership Agreement (TEPA) between the European Free Trade Association (EFTA) states - Iceland, Liechtenstein, Norway and Switzerland - and India has entered into force this week, on October 1. On track to become the world's third-largest economy, India is already the fastest-growing large economy.
The EFTA states collectively rank among the global leaders in both merchandise and services trade, but as highlighted in the joint statement on the occasion of the agreement's entry into force, together with India, they represent a combined GDP of about USD 5.4 trillion, providing the scale for deeper integration.
Signed in New Delhi on March 10, 2024, the agreement means free trade for most exports between the EFTA countries and India, including Norwegian and Icelandic seafood products.
Although Iceland has not issued any official statement now, the country's Foreign Minister at the time of signing, Bjarni Benediktsson, said then that it was the most important trade agreement his country had signed with Asia in a decade.
"It will strengthen our trade, economic and political relations with India for years to come," Benediktsson then said. "The TEPA with India – the world's most populous country and largest democracy - is perhaps EFTA's most significant trade agreement to date."
That same day, the former Icelandic Foreign Minister held a bilateral meeting with the Minister for External Affairs of India, Dr. S. Jaishankar, in which, among other topics, they discussed the free trade agreement they had just signed, the latest developments in global security and economic development, and cooperation between countries on renewable energy and sustainability.
As highlighted by the Icelandic Government after the meeting, the ministers discussed in particular the possibilities for increasing cooperation in the field of fisheries, such as fisheries management, the use of 100% of catches, and innovation in the sector.
For its part, Norway has commented on the agreement's entry into force, noting that India has more than 1.4 billion inhabitants, around 65% of whom are under the age of 35, making it a large and growing market that offers many new opportunities for Norwegian companies.
"With this agreement, over 90% of Norwegian goods will have duty-free access into India – the world's most populous country. That is good for business and provides security for Norwegian jobs," said the Norwegian Minister of Trade and Industry, Cecilie Myrseth.
"Norway has a small and open economy that is dependent on exports, and industry benefits from steadily better market access. At the same time, the agreement opens opportunities for the export of new products," she continued.
"This is an important agreement for Norway and the other EFTA countries. While the world is marked by tariff walls and trade wars, we are going in the opposite direction with more trade and stronger international cooperation," Minister Myrseth added.
The Norwegian Ministry of Trade, Industry and Fisheries explained that this trade and economic partnership agreement means that India will gradually remove tariffs on most of the products Norway exports to India.
Already from October 1, 2025, the agreement entails zero tariffs for about 42% of Norwegian exports to India. Later, the trade coverage will increase to approximately 85% after five years and to approximately 92% after ten years.
As Norwegian Minister Cecilie Myrseth pointed out, this agreement comes at a time when the world is marked by tariff walls and trade wars. For example, since August 7, both Iceland and Norway have faced a 15% tariff on their exports to the United States, putting them at a disadvantage compared to other countries such as the Faroe Islands or the UK, which only face 10%.
September was the first full month in which Norway faced this 15% tariff, and according to the results published today by the Norwegian Seafood Council, the outlook is not positive for salmon.
If measured in value, in the first half of the year, 10.6% of Norwegian salmon exports went to the U.S., in the third quarter, it was 7.6%, and the value of salmon exports to the North American country fell by 5% compared with the third quarter last year.
But it's not just Norway. The U.S. tariffs have caused different movements in the usual export markets, and many countries are looking for new destinations. A market as large as India is undoubtedly a priority for many seafood exporting countries, particularly those exporting salmon.
This is the case in Scotland, where salmon farmers have already begun preparing for a major offensive in the Asian country to ensure that Scottish salmon reaches more tables in India.
"This is an immensely exciting new market for salmon from Scotland, and we would hope that the Committee would support our desire to develop market share in India," the CEO of Salmon Scotland, Tavish Scott, said in a letter sent a few days ago to the Scottish Parliament's Rural Affairs and Islands Committee.
However, although the UK has also signed a free trade agreement with India, it will not come into force until next year, and in the meantime, it continues to face tariffs of 30%. So, now that the EFTA-India TEPA has come into force, Scotland, which has a slight advantage in the U.S. with its 10% tariff, will see Iceland and, above all, Norway, with higher export volumes, especially for salmon, become tough competitors in India.