TRADE AND ECONOMIC
PARTNERSHIP AGREEMENTBETWEENTHE EFTA STATESAND
THE REPUBLIC OF INDIA

1

PREAMBLE
The Governments of Iceland, the Principality of Liechtenstein, the Kingdom of Norway
and the Swiss Confederation (hereinafter referred to as “the EFTA States”), and theGovernment of the Republic of India (hereinafter referred to as “India”), hereinafter
each individually referred to as a “Party” or collectively as the “Parties”,
RECOGNISING the common intention to strengthen the links between the
EFTA States on the one part and India on the other by establishing close andlasting relations;
RECALLING their respective rights and obligations under international law,
including those set out in UN Charter and the Universal Declaration of Human
Rights;REAFFIRMING their commitment to pursue the objective of sustainable
development, whose pillars economic development, social development andenvironmental protection are mutually supportive, interdependent and essential
requirements of sustainable development;
DESIRING to create favourable conditions for the development anddiversification of trade between them and for the promotion of commercial andeconomic cooperation in areas of common interest on the basis of equality,
mutual benefit, and non-discrimination;
CONVINCED that this Agreement will enhance the competitiveness of theirpeople and enterprises in global markets and create conditions encouraging
economic, trade and investment relations between them;
DETERMINED to promote and further strengthen the multilateral trading
system, building on their respective rights and obligations under the Marrakesh
Agreement establishing the World Trade Organization done at Marrakesh on 15
April 1994 (hereinafter referred to as the “WTO Agreement”) and the otheragreements negotiated thereunder to which all Parties are parties, thereby
contributing to the harmonious development and expansion of world trade;
RECOGNISING the importance of trade facilitation in promoting efficient andtransparent procedures to reduce costs and to ensure predictability for the
trading communities of the Parties;
DETERMINED to implement this Agreement in furtherance of the objectives
to preserve and protect the environment through sound environmental
management and to promote an optimal use of the world’s resources inaccordance with the objective of sustainable development;
RECOGNISING that this Agreement would contribute towards alleviating
poverty, create new employment opportunities, improve living standards, andensure a large and steadily growing real income in their respective territories
through the expansion of trade and investment flows, while allowing for the2

optimal use of the world's resources in accordance with the objective ofsustainable development;
AFFIRMING their commitment to promote the principle of transparency;
ACKNOWLEDGING the importance of good corporate governance andcorporate social responsibility, and affirming their commitment to encourage
their enterprises to observe the same;
REAFFIRMING the rights of their Governments to regulate and set theirsustainable development policies and priorities;
HAVE AGREED to conclude the following Trade and Economic Partnership
Agreement (referred to as “this Agreement”):

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CHAPTER 1
GENERAL PROVISIONS

Article 1.1
Objectives
1.

The EFTA States and India hereby establish a free trade area in accordance withthe provisions of this Agreement.

2.

The objectives of this Agreement are:(a)to achieve the liberalisation of trade in goods, in conformity with
Article XXIV of the General Agreement on Tariffs and Trade, set out inAnnex 1A to the WTO Agreement (hereinafter referred to as the “GATT1994”);(b)to achieve the liberalisation of trade in services, in conformity with
Article V of the General Agreement on Trade in Services, set out inAnnex 1B to the WTO Agreement (hereinafter referred to as the“GATS”);(c)to mutually enhance investment opportunities;(d)to promote competition in their economies, particularly as it relates toeconomic relations between the Parties;(e)

to provide for adequate, effective and non-discriminatory protection andenforcement of intellectual property rights;(f)

to develop their trade relations so as to contribute to the objective ofsustainable development; and(g)to contribute in this way to the harmonious development and expansionof world trade.

Article 1.2
Geographical Scope
1.

Except as otherwise provided elsewhere in this Agreement, this Agreement
shall apply:(a)in respect of India: to the territory of the Republic of India, in accordancewith the Constitution of India, including its territorial waters, and theairspace above it and other maritime zones including the Exclusive
Economic Zone and continental shelf over which the Republic of India
has sovereignty, sovereign rights, or exclusive jurisdiction in accordancewith its law and the United Nations Convention on the Law of the Sea,and in accordance with international law;

4

(b)

2.

in respect of the EFTA States:(i)to the land territory, internal waters, and the territorial sea of a
Party, and the air-space above the territory of a Party, in
accordance with international law; and(ii)

to the exclusive economic zone and the continental shelf of a
Party, in accordance with international law.

This Agreement shall not apply to the territory of Svalbard, with the exceptionof trade in goods.

Article 1.3
Trade and Economic Relations Governed by this Agreement
1.

The provisions of this Agreement shall apply to the trade and economic relations
between, on the one side, the individual EFTA States and, on the other side,
India, but not to trade relations between individual EFTA States, unlessotherwise provided for in this Agreement.

2.

As a result of the customs union established by the Treaty of 29 March 1923
between Switzerland and the Principality of Liechtenstein, done at Bern,
Switzerland shall represent the Principality of Liechtenstein in matters covered
thereby.

Article 1.4
Relationship to Other Agreements
The Parties confirm their rights and obligations under the WTO Agreement andthe other agreements negotiated thereunder to which they are a party and any otherinternational agreements to which they are a party.

Article 1.5
Central, Regional and Local Government
Each Party is fully responsible for the observance of all obligations andcommitments under this Agreement, and shall take such reasonable measures as may
be available to it to ensure the observance of all obligations and commitments under
this Agreement by its respective regional and local governments and authorities.

Article 1.6
Transparency
1.

Each Party shall publish, or otherwise make publicly available, its laws,
regulations, judicial decisions, administrative rulings of general application and5its respective international agreements, that may affect the operation of thisAgreement.
2.

A Party shall promptly respond to specific questions and provide, upon request,
information to the other Parties on matters referred to in paragraph 1.

3.

Nothing in this Agreement shall require a Party to disclose confidential
information that would be contrary to its law or would impede law enforcement,or otherwise be contrary to the public interest or would prejudice the legitimate
commercial interests of any economic operator.

4.

In case of any inconsistency between the provisions of this Article andprovisions relating to transparency in other Chapters of this Agreement, thelatter shall prevail to the extent of the inconsistency.

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CHAPTER 2
TRADE IN GOODS

Article 2.1
Scope
This Chapter shall apply to trade in goods between the Parties.

Article 2.2
Classification of Goods
1.

The classification of goods in trade between the Parties shall be as set out ineach Party’s respective tariff nomenclature in conformity with the International
Convention on the Harmonized Commodity Description and Coding System andits Section Notes, Chapter Notes, Subheading Notes and General Rules for theInterpretation of the Harmonized System (hereinafter referred to as “HS”), as
regularly amended in the framework of the World Customs Organization.

2.

Each Party shall ensure that the transposition of its schedule of tariffcommitments, undertaken in order to implement Annexes 2.C (Schedule ofTariff Commitments on Goods), 2.D (Schedule of Tariff Commitments on
Goods), 2.E (Schedule of Tariff Commitments on Goods) or 2.F (Schedule ofTariff Commitments on Goods) in the nomenclature of the revised HS Codefollowing periodic amendments to the HS Code, is carried out without impairing
or diminishing the tariff commitments.

3.

Following periodic amendments to the HS Code, the Parties shall ensure thatthe transposition of the Product Specific Rules set out in Appendix 2.A.1 toAnnex 2.A (hereinafter referred to as “PSR”) is undertaken without impairing,
including rendering more stringent, the PSRs applicable upon entry into forceof this Agreement.

Article 2.3
Rules of Origin and Methods of Administrative Cooperation
Goods covered by this Chapter shall be eligible for preferential tariff treatment
provided that they satisfy the rules of origin as set out in Annex 2.A (Rules of Origin).

Article 2.4
Customs Duties
1.

Customs duties include any duty or charge of any kind imposed in connection
with the importation of a good, including any form of cess, surtax or surcharge
in connection with such importation, but do not include:

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(a)

charges equivalent to internal taxes imposed consistently with
Article III:2 of the GATT 1994;(b)measures applied consistently with the provisions of Articles VI or XIX
of GATT 1994, the Agreement on Implementation of Article VI of GATT1994, as set out in Annex 1A to the WTO Agreement (hereinafterreferred to as the “WTO Anti-dumping Agreement”), the Agreement on
Subsidies and Countervailing Measures, as set out in Annex 1A to the
WTO Agreement (hereinafter referred to as the “WTO SCM
Agreement) or the Agreement on Safeguards, as set out in Annex 1A to
the WTO Agreement (hereinafter referred to as the “WTO Safeguards
Agreement”), or measures imposed in accordance with Article 22 of the
Dispute Settlement Understanding by the WTO Dispute Settlement
Body;

(c)

fees or other charges imposed in conformity with Article VIII of the
GATT 1994.

2.

The Parties shall apply import duties on goods originating in another Party inaccordance with Annexes 2.C (Schedule of Tariff Commitments on Goods), 2.D(Schedule of Tariff Commitments on Goods), 2.E (Schedule of Tariff
Commitments on Goods) or 2.F (Schedule of Tariff Commitments on Goods).

3.

Where a Party’s most-favoured-nation applied rate of customs duty on aparticular good is lower than the rate of customs duty to be applied inaccordance with paragraph 2 on an originating good which is classified under
the same tariff line as the particular good, the good originating in the otherParties shall be eligible for that lower duty rate.

Article 2.5
Customs Valuation1
The determination of the customs value of goods traded between the Parties
shall be governed by Article VII of the GATT 1994 and Part I of the Agreement on
Implementation of Article VII of the GATT 1994, set out in Annex 1A to the WTO
Agreement (hereinafter referred to as “Customs Valuation Agreement”).

Article 2.6
Import and Export Restrictions
Prohibitions or restrictions other than duties, taxes or other charges, whether
made effective through quotas, import or export licences or other measures, shall be
prohibited in trade between the Parties, except in accordance with Article XI of the
GATT 1994, which is hereby incorporated into and made part of this Agreement,
mutatis mutandis.

1

Switzerland applies customs duties based on weight and quantity rather than ad valorem duties.

8Article 2.7
National Treatment
The Parties shall accord each other national treatment in accordance with
Article III of the GATT 1994, which is hereby incorporated and made part of thisAgreement, mutatis mutandis.

Article 2.8
State Trading Enterprises
The rights and obligations of the Parties concerning state trading enterprises
shall be governed by Article XVII of the GATT 1994 and the Understanding on theInterpretation of Article XVII of the GATT 1994.

Article 2.9
General and Security Exceptions
For the purposes of this Chapter, Articles XX and XXI of the GATT 1994 arehereby incorporated into and made part of this Agreement, mutatis mutandis.

Article 2.10
Balance of Payments
1.
The Parties shall endeavour to avoid the imposition of restrictions to safeguard
the balance of payments.
2.
The rights and obligations of the Parties with regard to restrictions to safeguard
the balance of payments shall be governed by Article XII of the GATT 1994.

Article 2.11
Trade Facilitation
With the objective of facilitating trade between the EFTA States and India, theParties shall, in accordance with Annex 2.B (Trade Facilitation):(a)simplify, to the greatest extent possible, customs procedures for trade ingoods;(b)promote multilateral cooperation between the Parties in order to enhancetheir participation in the development and implementation ofinternational conventions and recommendations on trade facilitation, in
accordance with domestic laws, regulation or procedural requirements;
and

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(c)

cooperate on trade facilitation in the framework of the Sub-Committee
on Trade Facilitation.

Article 2.12
Sub-Committee on Trade in Goods
1.

A Sub-Committee on Trade in Goods is hereby established, consisting ofgovernment representatives of the Parties.

2.

The Sub-Committee on Trade in Goods shall consider any matter arising under
this Chapter, including:(a)monitoring and review of measures taken and implementation ofcommitments under this Chapter including its Annexes, except for
Annexes 2.A (Rules of Origin) and 2.B (Trade Facilitation);(b)exchange of information and review of developments;(c)

preparation of technical amendments, including HS updating, andassisting the Joint Committee;(d)preparation of recommendations and reports to the Joint Committee asnecessary;(e)to the extent possible, promptly seeking to address tariff and non-tariffbarriers, if not covered by any other Sub-Committee under thisAgreement;(f)addressing issues relating to the administration and operation of bilateral
tariff rate quotas;(g)exchanging import statistics annually which shall cover data pertaining
to the most recent year available, including value and, where applicable,
volume, at the tariff line level for imports of goods of another Party
benefitting from preferential duty treatment under this Agreement, as
well as those that received non-preferential treatment; and(h)any other matter referred to it by the Joint Committee.

3.

The Sub-Committee on Trade in Goods shall act by consensus.

4.

The Sub-Committee on Trade in Goods shall meet at least every two years ormore frequently if so agreed by the Parties. The meetings of the Sub-Committee
on Trade in Goods shall be chaired jointly by an EFTA State and India.

5.

The Parties shall examine any difficulties that might arise in trade in goods
between them and shall endeavour to seek appropriate solutions throughdialogue and consultations.

10CHAPTER 3
TRADE REMEDIESArticle 3.1
Subsidies and Countervailing Measures
1.

The rights and obligations of the Parties relating to subsidies and countervailingmeasures shall be governed by Articles VI and XVI of the GATT 1994 and theWTO SCM Agreement, except as provided for in paragraphs 2 and 3.

2.

Before initiating a countervailing investigation, a Party shall afford anotherParty concerned adequate opportunity for consultations with the aim of seeking
a mutually acceptable solution. The consultations shall be held as soon as
possible, but no less than 7 days from the receipt of the invitation. The invitation
shall be communicated through channels that allow a record of thecommunication, including registered post, courier, or electronic transmission.
A Party may continue an investigation if no mutually acceptable solution isreached within 21 days from the receipt of the invitation, unless the Parties
concerned agree to continue the consultations.

3.

If a Party takes a decision to impose a countervailing measure, that Party shallapply the “lesser duty” rule by imposing a duty which is less than the subsidy
margin, when such lesser duty would be adequate to remove the injury to thedomestic industry.

4.

No Party shall have recourse to Chapter 12 (Dispute Settlement) for any matterarising under this Article.

Article 3.2
Anti-dumping
1.

Subject to paragraphs 2 to 12, the rights and obligations of the Parties in respectof the application of anti-dumping measures shall be governed by Article VI of
the GATT 1994 and the WTO Anti-dumping Agreement.

2.

The Parties agree not to take such measures in an arbitrary or protectionist
manner. When a Party has accepted a properly documented application andbefore initiating an investigation under the WTO Anti-dumping Agreement, that
Party shall notify in writing another Party whose goods are allegedly being
dumped 10 days in advance of initiating the investigation and provide it withthe full text of such application. As soon as possible and no later than 10 days
from receipt of the notification of the receipt of the application, the exporting
Party may request pre-initiation consultations with the importing Party, with theaim to clarify all possible concerns regarding the matters referred to in theapplication and arriving at a mutually acceptable solution. 2

2

It is understood that investigations may be undertaken in parallel with ongoing consultations and thatin the absence of a mutually acceptable solution each Party retains its rights and obligations under
Article VI of the GATT 1994 and the WTO Anti-dumping Agreement, subject to paragraphs 3 to 12.

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3.

The existence of margin of dumping in an original investigation or in a review
may normally be established on the basis of a comparison of a weighted average
normal value with a weighted average of prices of all comparable exporttransactions for the good as a whole.

4.

When anti-dumping margins are established, assessed or reviewed under
Articles 2, 9.3, 9.5, and 11 of the WTO Anti-dumping Agreement, regardless ofthe comparison basis under Article 2.4.2 of the WTO Anti-dumping Agreement,
all individual margins, whether positive or negative, shall be counted toward theaverage.

5.

Where originating goods are subject to an anti-dumping investigation, theexport price of such goods before adjustment for fair comparison, in accordancewith Article 2.4 of the WTO Anti-dumping Agreement, shall be based on thevalue which appears in relevant documents, including the certificate of origin
for the goods.

6.

If the investigating authority of the importing Party determines that the valuereferred to in paragraph 5 is unreliable because of association or a compensatory
arrangement between the exporter and the importer or a third party, the export
price may be constructed in accordance with Article 2.3 of the WTO Antidumping Agreement.

7.

An individual margin of dumping for an exporter or producer shall be
determined with respect to all export transactions during a certain time-period,
subject to Article 2.4.2 of the WTO Anti-dumping Agreement, which in no caseshall be less than six consecutive months.

8.

If a Party takes a decision to impose an anti-dumping duty pursuant toparagraph 1, that Party shall apply the “lesser duty” rule by imposing a duty
which is less than the dumping margin, when such lesser duty would be
adequate to remove the injury to the domestic industry.

9.

Where an anti-dumping investigation of an importing Party with respect togoods from another Party is terminated with negative final determination, thatimporting Party shall not initiate an investigation on the same goods within one
year from the termination of the previous investigation.

10.

Notwithstanding paragraph 9, the investigating authority of the importing Party
may initiate an investigation in an exceptional circumstance. If an investigation
is initiated in such a case, the authorities shall explain the exceptional
circumstance which warrants initiation in the notice of initiation.

11.

5 years from the entry into force of this Agreement, the Parties shall review theprovisions of this Article in the Joint Committee. The Parties shall thereafter
conduct biennial reviews of the provisions in the Joint Committee.

12.

No Party shall have recourse to Chapter 12 (Dispute Settlement) for any matterarising under this Article.

12Article 3.3
Global Safeguard Measures
1.

This Agreement shall not confer any additional rights or impose any additional
obligations on the Parties with regard to actions taken pursuant to Article XIXof the GATT 1994 and the WTO Safeguards Agreement, except that a Partytaking a safeguard measure under Article XIX of the GATT 1994 and the WTO
Safeguards Agreement may, to the extent consistent with its obligations under
the WTO Agreements, exclude imports of an originating good from anotherParty if such imports are not a substantial cause of serious injury or threat
thereof.

2.

No Party shall have recourse to Chapter 12 (Dispute Settlement) for any matterarising under this Article.

Article 3.4
Bilateral Safeguard Measure
1.

Where, as a result of the reduction or elimination of a customs duty under thisAgreement, any goods originating in a Party is being imported into the territoryof another Party in such increased quantities, in absolute terms or relative todomestic production, and under such conditions as to constitute a substantial
cause of serious injury or threat thereof to the domestic industry of like ordirectly competitive goods in the territory of the importing Party, the importing
Party may take bilateral safeguard measures to the extent necessary to remedy
or prevent the injury, subject to paragraphs 2 to 14.

2.

Bilateral safeguard measures shall only be taken upon clear evidence that
increased imports have caused or are threatening to cause serious injury
pursuant to an investigation.

3.

A Party may apply a bilateral safeguard measure only following an investigation
by its investigating authority pursuant to the following:(a)the investigation shall include reasonable public notice to all interested
parties and public hearings or other appropriate means in which
importers, exporters and other interested parties could present evidence
and their views, including the opportunity to respond to thepresentations of other interested parties and to submit theirviews, inter alia, as to whether or not the application of a bilateralsafeguard measure would be in the public interest. The investigating
authority shall publish a report setting forth its findings and reasoned
conclusions reached on all pertinent issues of fact and law including adetailed analysis of the case under investigation as well as ademonstration of the relevance of factors examined;

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(b)

in the investigation to determine whether increased imports have causedor are threatening to cause serious injury to a domestic industry under
the terms of this Agreement, the investigating authority shall evaluate
all relevant factors of an objective and quantifiable nature, having abearing on the situation of the domestic industry, in particular, the rate
and amount of the increase in imports of the originating good concernedin absolute and relative terms, the share of the domestic market taken byincreased imports, and changes in the level of sales, production,
productivity, capacity utilisation, profits and losses, and employment;(c)the determination of serious injury, or threat thereof shall not be madeunless the investigation demonstrates, on the basis of objective
evidence, the existence of a causal link between increased imports of thegoods concerned and serious injury or threat thereof. When factors otherthan increased imports are causing injury to the domestic industry at thesame time, such injury shall not be attributed to increased imports; and(d)any information which is by nature confidential, or which is provided ona confidential basis shall, upon cause being shown, be treated as such by
the investigating authority. Such information shall not be disclosed
without permission of the Party submitting it. A Party providing
confidential information may be requested to furnish non-confidential
summaries thereof or, if it indicates that such information cannot besummarised, the reasons why a summary cannot be provided. However,if the investigating authority finds that a request for confidentiality is notwarranted and if the Party concerned is either unwilling to make theinformation public or to authorise its disclosure in generalised orsummary form, the investigating authority may disregard suchinformation unless it can be demonstrated to their satisfaction fromappropriate sources that the information is correct.

4.

A Party intending to take a bilateral safeguard measure shall immediately, andin any case before taking a measure, notify the exporting Party. The notification
shall contain all pertinent information, which shall include evidence of serious
injury or threat thereof caused by increased imports, a precise description of thegoods involved, and the proposed measure, as well as the expected duration andtimetable for the progressive removal of the measure. As soon as available, theestimated date of introduction or time-period for implementing the decision
shall also be notified.

5.

If the conditions in paragraph 1 are met, the importing Party may take a bilateralsafeguard measure consisting in:(a)suspending the further reduction of any rate of customs duty provided
for under this Agreement for the goods; or(b)increasing the rate of customs duty for the goods to a level not to exceed
the lesser of:

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(i)

the most-favoured-nation rate of duty applied at the time theaction is taken; or(ii)

the most-favoured-nation rate of duty applied on the day
immediately preceding the entry into force of this Agreement.

6.

Bilateral safeguard measures shall be taken for a period not exceeding 2 years.
In very exceptional circumstances, measures may be taken up to a total
maximum period of 3 years. The Party intending to extend the period beyond 2
years shall make a notification to the exporting Party containing the elements
listed in paragraph 3 before taking a measure.

7.

The Parties concerned shall allow for consultations. Within 30 days from thenotification, the Parties concerned shall examine the information provided
under paragraphs 3 and 5 in the Joint Committee in order to facilitate a mutuallyacceptable solution of the matter.

8.

In critical circumstances, where delay would cause damage which would be
difficult to repair, a Party may take a provisional bilateral safeguard measurepursuant to a preliminary determination that there is clear evidence that
increased imports constitute a substantial cause of serious injury, or threat
thereof, to the domestic industry. The Party intending to take such a measure
shall immediately notify the exporting Party thereof. Within 30 days from thenotification, the pertinent procedures set out in paragraphs 3 to 7 shall be
initiated.

9.

Any provisional bilateral safeguard measures shall be terminated within 200
days from its imposition. The period of application of any such provisional
measure shall be counted as part of the duration of the measure and any
extension thereof, set out in paragraph 5. Any tariff increases shall be promptly
refunded if the investigation described in paragraph 2 does not result in a findingthat the conditions of paragraph 1 are met.

10.

A Party that may be affected by a bilateral safeguard measure, or a provisional
bilateral safeguard measure, shall be offered, by the Party proposing to apply
the measure, adequate means of trade liberalising compensation in the form ofconcessions having substantially equivalent trade effects. Compensation shallbe based on the total period of application of the bilateral safeguard measure.

11.

If, within the 30-day period set out in paragraph 6, the Parties concerned are
unable to agree on compensation offered by the Party proposing to apply thebilateral safeguard measure, in accordance with paragraph 9, the Party against
which the bilateral safeguard measure is applied may take compensatory action
having trade effects equivalent to the bilateral safeguard measure for theminimum period necessary to achieve the equivalent trade effects. The
compensatory action shall be immediately notified to the Party applying thebilateral safeguard measure. Such compensation described in paragraph 9 shallnot be provided if the measure described in paragraph 4 is applied for up to 2
years.

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12.

Upon the termination of the measure, the rate of customs duty shall be the rate
which would have been in effect but for the measure.

13.

No bilateral safeguard measure shall be applied against a particular good whilea safeguard measure referred to in Article 3.3 or under the WTO Agreement on
Agriculture is being applied to that good. If such a global safeguard measure isapplied against a particular good, any existing bilateral safeguard measure
which is applied against that good shall be terminated.

14.

5 years from the entry into force of this Agreement, and thereafter biennially,
the Parties shall review in the Joint Committee whether there is a need tomaintain the possibility to apply bilateral safeguard measures among them. In
these reviews, the Parties may decide to terminate the application of this Article.

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CHAPTER 4SANITARY AND PHYTOSANITARY MEASURES

Article 4.1
Objectives
The objective of this Chapter is to protect human, animal and plant life andhealth in the territory of the Parties while facilitating trade between them, by:(a)ensuring full transparency as regards sanitary and phytosanitary(hereinafter referred to as “SPS”) measures applicable to trade;(b)establishing a mechanism for the recognition of equivalence of sanitaryor phytosanitary measures maintained by a Party;(c)recognition of the health status of each Party and applying the principleof regionalisation zoning and compartmentalisation;(d)further implementing the principles of the WTO SPS Agreement;(e)using existing standards established under the World Organisation for
Animal Health (hereinafter referred to as “WOAH”), the Codex
Alimentarius and the International Plant Protection Convention(hereinafter referred to as “IPPC”);(f)establishing mechanisms and procedures for trade facilitation; and(g)

improving communication, consultation and cooperation between theParties on SPS measures.

Article 4.2
Affirmation of WTO SPS Agreement
Each Party affirms its rights and obligations with respect to the other Parties
under the WTO SPS Agreement. Nothing in this Agreement shall affect the rights andobligations that each Party has under the WTO SPS Agreement.

Article 4.3
Scope
This Chapter shall apply to all SPS measures of a Party that may, directly or
indirectly, affect trade between the Parties.

17Article 4.4
Internal Harmonisation
Each Party shall ensure that animals, animal products, plants and plant products
lawfully put on the market can move freely within its territory provided that they
comply with the relevant SPS requirements of the market at the point of entry.

Article 4.5
Competent Authorities
1.

The Parties shall exchange names, addresses and competences of theircompetent authorities responsible for the implementation of this Chapter.

2.

In accordance with Article 4.16, the Parties shall inform each other about any
significant changes in such information.

Article 4.6
Recognition of Pest and Disease Area Status
The Parties recognise the concepts of zoning, compartmentalisation andregional conditions, including pest- or disease-free areas and areas of low pest or
disease prevalence. The Parties shall take into account the relevant decisions of the
WTO SPS Committee and international standards, guidelines and recommendations.

Article 4.7
Determination of Equivalence
1.

Equivalence may be determined for an individual measure, groups of measures,or systems related to a certain commodity or categories of commodities.

2.

The consideration of equivalence by the importing Party upon request of theexporting Party for recognition of its measures shall not be a reason to disrupt
trade or suspend ongoing imports from the exporting Party.

3.

Within a reasonable period of time after conclusion of its assessment, theimporting Party shall notify the exporting Party in writing about the equivalence
determination. The importing Party shall implement the measure within areasonable period of time. If an equivalence determination does not result inrecognition by the importing Party, the importing Party shall provide theexporting Party with the rationale for its decision.

4.

The decision of recognition, non-recognition, withdrawal or suspension ofequivalence rests solely with the importing Party acting in accordance with its
administrative and legislative framework taking into account the guidelines,
standards, and recommendations of the WOAH, IPPC and the Codex
Alimentarius.

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5.

If the importing Party formally recognises equivalence, it shall promptly adopt
measures to give effect to the equivalence and enable trade between the Parties.

Article 4.8
Verifications
1.

In order to obtain or maintain confidence in the effective implementation of this
Chapter, each Party, within the scope of this Chapter, shall have the right tocarry out audits and verifications of the competent authorities’ control programsor procedures of any other Party.

2.

The process shall be carried out in accordance with the relevant international
standards, guidelines and recommendations of the Codex Alimentarius, WOAH
and IPPC. In particular, verification activities shall concentrate primarily on
evaluating the effectiveness of the official inspection and certification systems
rather than on specific commodities or establishments in order to determine theability of the exporting Party’s competent authority to control and deliver therequired assurances to the importing Party.

3.

The frequency of verifications shall depend on the results of previous
verifications.

4.

If the importing Party decides to carry out a verification visit in the exporting
Party, the importing Party shall notify the exporting Party of the verification
visit at least two months prior to such visit, except in emergency cases or if theParties agree otherwise. Any modification concerning the verification visit shallbe agreed by the Parties concerned.

Article 4.9
Import Checks and Certification Procedures
1.

Each Party shall ensure that its control, inspection and approval procedures,
including, inter alia, procedures for sampling, testing and certification are inaccordance with Annex C of the WTO SPS Agreement and this Article.

2.

Each Party shall ensure that animals and animal products, plants and plant
products, or other related goods– exported to another Party comply with the SPS
requirements set out in the certificates of the importing Party.

3.

The importing Party shall ensure that its import conditions for products
imported from another Party are applied in a non-discriminatory manner andproportional to the risk associated with such products.

4.

Import checks applied to imported products shall be carried out without undue
delay and in the least trade-restrictive manner.

5.

Information about the frequencies of import checks on such importations shallbe made available upon request.

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6.

If goods are rejected at a port of entry due to a verified sanitary or phytosanitaryissue, the importing Party shall inform the exporting Party’s competentauthority as soon as possible.

7.

If the importing Party finds that certain goods are not in compliance with its
requirements, it may put such goods under official detention and, in consultation
with the exporter or its representative, decide to subject such goods toappropriate measures as defined in its domestic law. In taking these decisions,the importing Party shall take into account any information available to it orinformation submitted to it in a timely manner depending upon the risk,
including submissions from the exporter or its representative. The persons
responsible for the consignment shall be liable for the costs incurred by theimporting Party for these activities.

8.

Each Party shall ensure that the exporter or its representative shall have the rightof appeal against decisions, and that he or she is provided with information
about his or her rights of appeal, the applicable procedure and time limits.

9.

This Article shall be without prejudice to the right of the competent authorities
to promptly take an appropriate decision concerning emergency measures forthe protection of human, animal or plant life or health taken to address serious
risks for human, animal or plant life or health. The circumstances leading to thedecision shall be explained to the exporter or its representative.

10.

Inspection fees shall be equitable in relation to fees charged for the inspectionof like domestic products.

11.

Without prejudice to each Party’s right to import controls, the importing Party
shall accept certificates issued by the relevant competent authority in theexporting Party in compliance with the regulatory requirements of the importing
Party.

Article 4.10
Risk Assessment
1.

The Parties shall strengthen cooperation on risk assessment in accordance with
the WTO SPS Agreement while taking into account the relevant decisions of
the WTO SPS Committee and international standards, guidelines andrecommendations.

2.

When conducting a risk assessment, the importing Party shall ensure that therisk assessment is documented and that it provides the concerned exporting
Party or Parties with an opportunity to comment, in a manner to be determinedby the importing Party.

3.

Upon request by the exporting Party, the importing Party shall inform theexporting Party about the progress of the specific risk assessment request andany delay that may occur during the process.

20

4.

Without prejudice to emergency measures, no Party shall stop the importationof a good of another Party solely for the reason that the importing Party isundertaking a review of an existing SPS measure.

Article 4.11
Emergency Measures
1.

If a Party adopts an emergency measure which is necessary for the protectionof human, animal, plant life or health and that may have an effect on trade, it
shall immediately notify the exporting Parties concerned in writing through thecontact points established under Article 4.16 or already establishedcommunication channels of the Parties.

2.

The exporting Parties concerned may request discussions with the Party
adopting an emergency measure according to paragraph 1. Such discussions
shall be held as soon as practicable. Each Party shall endeavour, as part of these
discussions, to provide relevant information. Each Party involved in thediscussions shall take due account of any information provided through thediscussions.

3.

If a Party adopts an emergency measure, it shall review that measure within areasonable period of time or upon request of the exporting Party. The importing
Party may, if necessary, request relevant information and the exporting Party
shall endeavour to provide the relevant information to assist the importing Partyin the review of the adopted emergency measure. The importing Party shallprovide the result of the review to the exporting Party upon request. If theemergency measure is maintained after the review, the importing Party shallreview the measure periodically based on the most recent available information
and, upon request of the exporting Party, shall explain the reason for thecontinuation of the emergency measure.

Article 4.12
Transparency
1.

The Parties recognise the importance of transparency as set out in Annex B of
the WTO SPS Agreement.

2.

The Parties recognise the importance of exchanging information on thedevelopment, adoption and application of SPS measures that may havesignificant effects on trade between or among the Parties.

3.

In implementing this Article, each Party shall take into account relevant
decisions of the WTO SPS Committee and international standards, guidelines
and recommendations.

4.

Each Party shall notify proposed measures or changes to existing SPS measuresthat may have a significant effect on its trade with the other Parties through the
WTO SPS online submission system or contact points established under21

Article 4.16, or through already established communication channels of theParties.
5.

Unless urgent problems of health arise or threaten to arise, or the measure is ofa trade facilitating nature, a Party shall normally allow a period of at least 60
days for other Parties to provide written comments after it makes a notification
pursuant to paragraph 4. A Party shall consider reasonable requests fromanother Party to extend the comment period.

6.

Upon reasonable request from another Party, a Party shall provide relevant
information and clarification regarding any SPS measure to the requesting
Party, within a reasonable period of time, including:

7.

(a)

the SPS requirements that apply for the import of specific products;(b)

the status of the Party’s application; and(c)procedures for authorising the import of specific products.

An importing Party shall provide timely and appropriate information to Parties
concerned through contact points established under Article 4.16, or throughalready established communication channels of the Parties, where there is:(a)significant or recurring sanitary or phytosanitary non-complianceassociated with exported consignments identified by the importing
Party;(b)a sanitary or phytosanitary measure adopted provisionally against or
affecting the export of another Party considered necessary to protect
human, animal or plant life or health within the importing Party.

Article 4.13
Information Exchange
1.

The Parties shall exchange information which is relevant for the implementationof this Chapter systematically, with a view to provide assurance, to strengthen
mutual confidence and to demonstrate the efficacy of the programmes
controlled. Where appropriate, this exchange of information may include
exchange visits of officials. Upon request, notifications not covered by the WTO
SPS Agreement shall be made to the contact points established under Article
4.16 in English. However, in case a Party wishes to notify in any other WTO
language, an English translation shall be made available to the Parties.

2.

Without prejudice to the WTO SPS Agreement, as regards notification of
measures, the Parties may also exchange information on other relevant topics,
including:(a)any serious or significant human, animal or plant life or health risk,
including any food emergencies; and

22

(b)

3.

sanitary and phytosanitary import requirements and their amendments,
including the models for the official certificates or attestations, asprescribed by the importing Party.

An information exchange shall be considered to have taken place, in accordancewith this Article if the information referred to in this Article has been madeavailable:(a)by a notification to the WTO in accordance with its relevant rules; or(b)on the Parties’ official and publicly accessible websites free of charge.

Article 4.14
Review Clause
Upon request of a Party, the Parties shall without undue delay negotiate an
arrangement extending to each other equivalent treatment related to SPS measures
which all Parties have agreed with a non-Party.

Article 4.15
Sub-Committee on Sanitary and Phytosanitary Measures
1.

A Sub-Committee on sanitary and phytosanitary measures (hereinafter referred
to as the “Sub-Committee on SPS”) is hereby established under the Joint
Committee, consisting of government representatives of the Parties.

2.

The Sub-Committee on SPS shall consider any matter arising under this
Chapter, including:(a)monitoring and reviewing the implementation of this Chapter;(b)

encouraging discussions, cooperation and the exchange of information
between the competent authorities on matters related to this Chapter;(c)the preparation of recommendations and reports to the Joint Committee
as necessary; and(d)any other matter as referred to it by the Joint Committee.

3.

The Sub-Committee on SPS shall act by consensus.

4.

The Sub-Committee on SPS shall normally meet every two years unlessotherwise agreed by the Parties. Such meetings may be conducted in any agreed
manner on a case-by-case basis. The meetings of the Sub-Committee on SPS
shall be chaired jointly by an EFTA State and India.

23

Article 4.16
Contact Points
1.

Each Party shall designate a contact point responsible for coordinating theimplementation of this Chapter

2.

Each Party shall provide the other Parties with the contact details of its contact
point and shall promptly notify the other Parties of any change in contact point.

Article 4.17
Consultations
If a Party has taken a measure which is likely to create, or has created an obstacle
to trade between the Parties, another Party may request consultations. Suchconsultations shall be initiated as early as possible and conducted by the competentauthorities of the Parties concerned in a mutually agreed manner. The outcome of theconsultations shall be reported to the Sub-Committee on SPS.

Article 4.18
Cooperation
1.

2.

The Parties shall strengthen their cooperation with a view to facilitate theimplementation of this Chapter. In their cooperation, the Parties shall work to
identify, develop and promote trade facilitating measures which may include:(a)

training and exchange of experience programmes for government
officials and technical staff in relation to inspection, certification, testingprocedures, verifications, meeting regulatory and market requirements;(b)development and improvement of risk assessment procedure;(c)forums such as seminars and workshops for the exchange of views andbest practices on ’the Parties’ SPS regimes; and(d)international standardisation activities and activities of the relevantinternational organisations.

The Parties may cooperate on any matter of mutual interest under this Chapter,
including sector-specific proposals.

24

CHAPTER 5TECHNICAL BARRIERS TO TRADE

Article 5.1
Objectives
The objective of this Chapter is to facilitate and increase trade in goods andobtain effective access to each Party’s market. For this purpose, the Parties shall takesteps to:(a)improve the implementation of the Agreement on Technical Barriers to
Trade, as set out in Annex 1A to the WTO Agreement (hereinafterreferred to as the “WTO TBT Agreement”);(b)ensure that technical regulations, standards and conformity assessment
procedures do not create unnecessary obstacles to trade;(c)enhance cooperation between them in areas relevant to the applicationof this Chapter;(d)increase their capacity to ensure, whenever appropriate, compliancewith international standards and with their technical regulations,conformity assessment procedures and standards;(e)promote convergence and alignment of technical regulations andstandards towards relevant international technical regulations andstandards, whenever applicable; and(f)promote recognition of equivalence of technical regulations andfacilitate acceptance of conformity assessment procedures.

Article 5.2
Affirmation of the WTO TBT Agreement
1.

The Parties affirm their rights and obligations with respect to each other under
the WTO TBT Agreement which is hereby incorporated into and made part ofthis Agreement, mutatis mutandis.

2.

No Party shall have recourse to dispute settlement under Chapter 12 (Dispute
Settlement) for a matter that exclusively alleges a violation of the provisions of
the WTO TBT Agreement.

Article 5.3
Scope
1.

This Chapter shall apply to the preparation, adoption and application of alltechnical regulations, standards and conformity assessment procedures of25

central level of government bodies which may affect trade in goods between theParties.
2.

Each Party shall take such reasonable measures as may be available to it toensure compliance with this Chapter by regional level government bodies on
the level directly below that of the central level of government within its
territory, which are responsible for the preparation, adoption and application oftechnical regulations, standards and conformity assessment procedures.

3.

Notwithstanding paragraph 1, this Chapter shall not apply to:(a)purchasing specifications prepared by governmental bodies for
production or consumption requirements of such bodies; and(b)sanitary and phytosanitary measures as defined in Annex 1A of theAgreement on the Application of Sanitary and Phytosanitary Measures,as set out in Annex 1A to the WTO Agreement (hereinafter referred toas the “WTO SPS Agreement”).

Article 5.4
Cooperation
1.

The Parties shall strengthen their cooperation with a view to increase the mutual
understanding of their respective systems and facilitate access to their respective
markets. To this end, they may establish regulatory dialogues at both thehorizontal and sectoral levels.

2.

In their cooperation, the Parties shall work to identify, develop and promotetrade facilitating measures which may include:(a)reinforcing regulatory cooperation through, for example, training,exchange of information, experience and data whenever available, andscientific and technical cooperation with a view to create technicalregulations that are not more trade restrictive than necessary and makeefficient use of regulatory resources;(b)

where appropriate, considering the simplification of technicalregulations, standards and conformity assessment procedures;(c)working towards the possibility of converging or aligning technicalregulations, standards and conformity assessment procedures, inparticular where no international standards exist;(d)promoting and encouraging cooperation between their respective
organisations, public or private, responsible for technical regulations,standardisation, conformity assessment procedures and metrology, bothbilaterally and in international fora;

26

(e)

programmes to increase the capacity of enterprises, in particular micro,
small and medium-sized enterprises, to meet regulatory and market
requirements;(f)cooperating on good regulatory practices;(g)

promoting and encouraging participation in international standard
setting bodies, such as the International Organization forStandardization, the International Electrotechnical Commission and theInternational Telecommunication Union, and promoting the use ofinternational standards as a basis for technical regulations;(h)exchanging views, in the context of international fora, such as the WTO
Committee on Technical Barriers to Trade, in particular on the use ofinternational standards in support of regulation; and(i)promoting the development of the necessary technical infrastructure in
the field of standardisation, conformity assessment and metrology.

Article 5.5
Technical Regulations
1.

The Parties recognise the importance of the use of international standards andagree:(a)to use relevant international standards or relevant parts of them as a basis
for technical regulations, except when such international standards
would be an ineffective or inappropriate means for the fulfilment of thelegitimate objectives pursued in accordance with Article 2.4 of the WTO
TBT Agreement;(b)where international standards have not been used as a basis for technicalregulations, upon request of a Party, to explain to that Party in writing
the reasons why such standards have been judged inappropriate orineffective for the aim pursued and, whenever possible, to identify theparts which in substance deviate from relevant international standards;(c)to each publish, free of charge, technical regulations on an official
website;(d)to ensure that interested persons of another Party are allowed toparticipate in any consultation open to the general public concerning the
preparation of technical regulations;(e)when making notifications in accordance with Article 2.9 of the WTO
TBT Agreement, to allow for the Party receiving the notification,
normally 60 days from the notification, to provide comments in writingon the proposal unless in exceptional cases where urgent problems
explicitly stated, of safety, health, environmental protection or national

27

security arise or threaten to arise; and where practicable to give
appropriate consideration to reasonable requests for extending thecomment period;

2.

3.

(f)

except in urgent circumstances referred to in Article 2.10 of the WTO
TBT Agreement, to allow a reasonable interval between the publicationof technical regulations and their entry into force in order to allow time
for the economic operators of the exporting Party to adapt their products
or methods of production to the requirements of the importing Party; and(g)to consider the possibility of recognising the equivalence of technicalregulations of another Party. For that purpose, a Party which has
prepared a technical regulation that it considers to be equivalent to atechnical regulation of another Party, having essentially the same
objective, scope and level of protection to be achieved may request in
writing that another Party recognises it as equivalent. Such written
request shall set out the reasons why the technical regulations are
considered to be equivalent.

To facilitate an appropriate explanation under subparagraph 1(a), the requesting
Party shall ensure that its request for an explanation:(a)identifies the relevant international standard, guide or recommendationthat the requested Party has not used as the basis for its technicalregulation; and(b)describes how the technical regulation which is not based on theinternational standard, guide or recommendation is a restriction, or has
the potential to restrict trade between the Parties.

The Parties shall ensure that products lawfully put on the market can movefreely within their respective territories provided that they comply with therelevant requirements on technical barriers to trade of the market at the point ofentry.

Article 5.6
Standards
1.

The Parties shall, upon request, exchange information on:(a)their use of standards related to technical regulations;(b)their standardisation processes and the use of international standards asa basis for their national standards; and(c)cooperation agreements or arrangements on standardisation with third
parties or international organisations, subject to the confidentiality
obligations of those agreements or arrangements.

28

2.

Where standards are made mandatory in a technical regulation, the transparency
obligations set out in Article 5.12 shall be fulfilled.

3.

Each Party shall encourage its recognised standardisation bodies to cooperatewith the relevant recognised standardisation bodies of the other Parties ininternational standardisation activities. Such cooperation may take placethrough the Parties’ activities in regional and international standardisation
bodies of which the recognised standardisation bodies of all the Parties are
members.

Article 5.7
Conformity Assessment
1.

2.

The Parties recognise that a broad range of mechanisms exist to facilitate theacceptance of the results of conformity assessment procedures conducted inanother Party, which may contribute to increased efficiency, avoidance of
duplication and cost effectiveness. These mechanisms include:(a)the importing Party’s acceptance of a supplier’s declaration ofconformity;(b)agreements on mutual acceptance of the results of conformity
assessment procedures with respect to specific technical regulations
conducted by bodies located in another Party;(c)use of accreditation procedures for qualifying conformity assessment
bodies located in the territory of another Party;(d)governmental designation of conformity assessment bodies located inanother Party;(e)recognition by a Party of the results of conformity assessment
procedures conducted in another Party;(f)voluntary arrangements between conformity assessment bodies in eachParty; and(g)utilising existing regional and international mutual recognition
agreements of which both Parties are parties.

Having regard to these considerations, the Parties agree to:(a)intensify their exchange of information on these and similar mechanisms
with a view to facilitating the acceptance of conformity assessment
results;(b)

exchange information on conformity assessment procedures, including
on the selection of appropriate conformity assessment procedures;

29

(c)

exchange information on accreditation policy and promote the use ofaccreditation to facilitate acceptance of conformity assessment results
and consider how to make best use of international standards foraccreditation and international agreements involving the Parties’
accreditation bodies, for example, through the International Laboratory
Accreditation Cooperation (ILAC) Mutual Recognition Arrangement(MRA), or the International Accreditation Forum’s (IAF) Multilateral
Arrangement (MLA);(d)if the Parties accept results of conformity assessment procedures
conducted in another Party’s territory, it shall be on terms no lessfavourable than conformity assessment procedures conducted in its own
territory; and(e)encourage accreditation bodies and conformity assessment bodies, toparticipate in cooperative voluntary arrangements, as a basis for
acceptance of conformity assessment results.

Article 5.8
Joint Cooperation on Technical Regulations, Standards and Conformity
Assessment Procedures
1.

For the purpose of applying Article 5.1.2 of the WTO TBT Agreement, wherea Party requires positive assurance of conformity with its applicable technicalregulations for accepting a product on its market, the Party shall ensure that therequired level of assurance of conformity takes into account the risk that noncompliance would entail with regard to the legitimate objective pursued.

2.

A Party may, in order to fulfil a legitimate objective, decide to introduce preregistration, registration, authorisation or mandatory third-party conformity
assessment to allow access of a product to its market. Before introducing suchmeasures, it shall notify such draft measure in accordance with Article 2.9.2 of
the WTO TBT Agreement. Upon request of another Party, it shall provide thereasons with explanation for such proposed change.

3.

For sectors where mandatory third-party assurance of conformity or preregistration, registration or authorisation is required, the Parties agree toencourage their conformity assessment bodies to join any existing arrangements
for international harmonisation of technical regulations and mutual recognitionof conformity assessment results at multilateral level, or to cooperate towards
the creation of new ones as appropriate.

30Article 5.9
Market Surveillance
The Parties undertake, inter alia, to:(a)exchange views on market surveillance and enforcement mechanisms
and related activities; and(b)

ensure that there are no conflicts of interest between the market
surveillance bodies and the manufacturers or producers subject tocontrol or supervision.

Article 5.10
Conformity Assessment Fees and Processing Periods
With regard to the processing times and fees charged for assessing theconformity of products, the Parties reaffirm their obligations under Article 5.2 of the
WTO TBT Agreement.

Article 5.11
Marking and Labelling
The Parties agree that where their technical regulations contain mandatory
marking or labelling requirements, each Party will observe the principles of Article 2.2of the WTO TBT Agreement and:(a)each Party shall endeavour to minimise labelling and marking
requirements to those which are relevant to consumers or users of the
products or to indicate the products conformity with mandatory
technical requirements;(b)each Party may specify the content of labels and markings, but shall not
require prior approval, registration, or certification of the labels or
markings of products as a precondition for placing on their respective
markets, for sale or free of charge, products that otherwise comply withits mandatory technical requirements, unless it is not more trade
restrictive than necessary to fulfil legitimate objectives;(c)

if that Party mandates the use of a unique identification number by
economic operators, it shall issue such a number to the other Parties’
economic operators without undue delay;(d)if that Party requires the information on the labels to be in a specified
language, it shall also accept other languages in addition to the
mandatory language, unless the information would be misleading,contradictory or confusing in relation to the information that theimporting Party requires with respect to the goods; and

31

(e)

each Party shall, except in cases where they consider that legitimate
objectives under the WTO TBT Agreement would be compromised
thereby, endeavour to accept non-permanent or detachable labels orlabelling in the accompanying documentation rather than physicallyattached to the product.

Article 5.12
Transparency
1.

The Parties recognise the importance of the provisions relating to transparency
in the WTO TBT Agreement. To this end, the Parties shall take into accountrelevant Decisions and Recommendations adopted by WTO Committee on
Technical Barriers to Trade since 01 January 1995 (G/TBT/1/Rev.15) as may
be revised.

2.

Upon written request of a Party, the requested Party shall provide the full text
or summary of its notified technical regulations and conformity assessment
procedures in English within 30 days from receipt of the request. The content
of the summary shall be determined by the responding Party.

3.

Each Party shall, upon written request of another Party, provide information
regarding the objectives of, and rationale for, a technical regulation orconformity assessment procedure that Party has adopted or is proposing to
adopt.

4.

Each Party shall take the comments of another Party into account and shall,
upon request of that other Party, endeavour to provide responses to thesecomments.

5.

If a Party detains at the point of entry an imported consignment, due to noncompliance with a technical regulation or a conformity assessment procedure,it shall notify the importer or its representative, as soon as possible, the reasonsfor the detention.

6.

Unless otherwise provided for in this Chapter, any information or explanation
requested by a Party pursuant to this Chapter shall be provided by the requested
Party, in print or electronically, within a reasonable period of time agreed
between the requesting and requested Parties and, if possible, within 60 days.
Upon request of the requesting Party, the requested Party shall provide suchinformation in English.

Article 5.13
Contact Points
1.

Each Party shall designate a contact point responsible for coordinating theimplementation of this Chapter.

32

2.

Each Party shall provide the other Parties with the contact details of its contact
point and shall promptly notify the other Parties of any change in those.

Article 5.14
Sub-Committee on Technical Barriers to Trade1.

A Sub-Committee on Technical Barriers to Trade (hereinafter referred to as the“Sub-Committee on TBT”) is hereby established under the Joint Committee,
consisting of representatives of the Parties.

2.

The Sub-Committee on TBT shall consider any matter arising under this
Chapter, including:(a)monitoring, reviewing and enhancing the implementation of this
Chapter, including its annexes, if any;(b)

encouraging discussions, cooperation and exchange of information
between competent authorities on matters related to this Chapter;(c)discussing means of improving access to the Parties’ respective markets;(d)considering additions and amendments to the list of sectors or productareas under annexes to this Chapter, if any;(e)facilitating sectoral cooperation among governmental and nongovernmental conformity assessment bodies and laboratories in theParties’ territories;(f)the preparation of recommendations and report to the Joint Committee
as necessary; and(g)any other matter referred to it by the Joint Committee.

3.

The Sub-Committee on TBT shall act by consensus.

4.

Unless otherwise agreed by the Parties, the Sub-Committee on TBT shallnormally meet every two years. Such meetings may be conducted in any agreed
manner on a case-by-case basis. The meetings of the Sub-Committee on TBTshall be chaired jointly by an EFTA State and India.

Article 5.15
Exchange of Information and Consultations
1.

A Party shall give prompt and positive consideration to any request fromanother Party for information, clarification and consultations on issues relating
to the implementation of this Chapter. The Sub-Committee on TBT may discussand decide on timeframes and other modalities on information, clarification andconsultations.

33

2.

A Party may request consultations with another Party if that other Party hastaken a measure which is likely to create or has created an obstacle to trade
between the Parties. Such consultations shall be initiated as soon as possible andmay be conducted by the competent authorities of the Parties concerned in amutually agreed manner. The outcome of the consultations shall be reported to
the Sub-Committee on TBT.

3.

The Parties agree to enhance their communication and exchange of information
on issues within the scope of this Chapter, in particular on ways to facilitate
compliance with their technical regulations, standards and conformity
assessment procedures and to eliminate unnecessary obstacles to trade in goods
between them.

Article 5.16
Review Clause
Upon request of a Party, the Parties shall without undue delay negotiate an
arrangement extending to each other equivalent treatment related to technicalregulations, standards and conformity assessment procedures which all Parties haveagreed with a non-Party.

34

CHAPTER 6
TRADE IN SERVICES

Article 6.1
Scope and Coverage
This Chapter shall apply to measures by the Parties affecting trade in services.

Article 6.2
Incorporation of Provisions from the GATS
1.

With regard to the rights and obligations of the Parties under this Chapter, theprovisions of the GATS and its annexes, including the definitions set out
therein, are hereby incorporated into and made part of this Chapter, mutatis
mutandis, except as provided under this Chapter.3

2.

Chapter 13 shall substitute Part V of the GATS. Article 6.3 shall apply withregard to the Parties’ most-favoured nation obligations under this Chapter.4
Article 6.5 shall substitute paragraph (m) of Article XXVIII of the GATS.

3.

Schedules of specific commitments and lists of most-favoured-nation
exemptions under the GATS are substituted by the Parties’ Schedules ofSpecific Commitments and Lists of MFN Exemptions which are set out
respectively in Annexes 6.F and 6.G, and form an integral part of this Chapter.
The terms “schedule” and “specific commitments” contained in GATS
provisions shall be understood as referring to the Schedules of SpecificCommitments annexed to this Chapter and to the specific commitments
inscribed therein, respectively.

4.

For the purposes of this Chapter “Member” contained in provisions of the
GATS that are incorporated into and made part of this Chapter means “Party”.
However, under Article XII:2(a) of the GATS “Members” means “Members of
the WTO”.

5.

The provisions incorporated from the GATS and its annexes are complemented
by the provisions of the following Annexes, which form an integral part of this
Chapter:(a)Annex 6.A (Financial Services);

3

The Parties understand that they are not required to negotiate bilaterally the specific provisions forwhich multilateral negotiations have been mandated under the GATS in relation to emergency safeguard
measures, government procurement and subsidies or hold consultations as provided in respect of balanceof payments. The Parties also understand that provisions of the GATS requiring notification or any othercommunication to the Council for Trade in Services shall not apply bilaterally. The Parties are notrequired to bilaterally implement similar provisions contained in Annexes to the GATS, such as Air
Transport review, most-favoured-nation review or Maritime Transport.
4
The Parties understand that with respect to provisions of the GATS that are incorporated into and madepart of this Chapter mutatis mutandis, reference to Article II of the GATS shall be understood as referring
to Article 6.3 of this Chapter.

35

(b)

Annex 6.B (Telecommunications Services);(c)Annex 6.C (Movement of Natural Persons Supplying Services);(d)Annex 6.D (Recognition of Qualifications of Service Suppliers); and(e)Annex 6.E (Maritime Personnel).

Article 6.3
Most-Favoured Nation Treatment 5
1.

Without prejudice to measures taken in accordance with Article VII and
Article II.3 of the GATS, and except as provided for in its list of most-favourednation exemptions contained in Annex 6.G, each Party shall accord immediately
and unconditionally in respect of all measures affecting the supply of services,
to services and service suppliers of another Party, treatment no less favourable
than the treatment it accords to like services and services suppliers of any nonParty.

2.

Treatment granted under other existing or future agreements concluded by a
Party and notified under Article V or Article Vbis of the GATS shall not be
subject to paragraph 1.

3.

If a Party concludes or amends an agreement of the type referred to inparagraph 2, it shall, upon request of another Party give consideration for
negotiating the incorporation into this Agreement of a treatment no lessfavourable than that provided under the former agreement. Such incorporation,
if agreed, should maintain the mutual balance of commitments undertaken byeach Party under this Agreement.

Article 6.4
Schedules of Specific Commitments
1.

The specific commitments each Party undertakes in line with Part III of the
GATS are set out in Annex 6.F.

2.

With respect to sectors where such commitments are undertaken, each scheduleshall specifies:

5(a)terms, limitations, and conditions on market access;(b)conditions and qualifications on national treatment;(c)undertakings relating to additional commitments referred to in
Article XVIII of the GATS;

This Article shall not apply to Financial Services.

36

3.

(d)

where appropriate, the time-frame for implementation of suchcommitments; and(e)the date of entry into force of such commitments.

Article XX:2 of the GATS shall apply to measures inconsistent with both
Articles XVI and XVII of the GATS.

Article 6.5
Natural Persons of a Party
For the purposes of this Chapter, “natural person of another Party” means anatural person who resides in the territory of that other Party or any other Party andwho, under the domestic law of that other Party, is:(a)a national or citizen of that other Party; or(b)a permanent resident of that other Party provided that the Party accords
substantially the same treatment to its permanent residents as it does to
its nationals in respect of measures affecting trade in services, provided
further that no Party is obligated to accord to such permanent residents
treatment more favourable than would be accorded by that other Party
to such permanent residents.

Article 6.6
Payments and Transfers
1.

Except under the circumstances envisaged in Article XII of the GATS, no Party
shall apply restrictions on international transfers and payments for current
transactions relating to its specific commitments.

2.

Nothing in this Chapter shall affect the rights and obligations of the Parties
under the Articles of Agreement of the International Monetary Fund adopted at
Bretton Woods on 22 July 1944 (hereinafter referred to as “IMF Articles ofAgreement”), including the use of exchange actions which are in conformity
with the IMF Articles of Agreement, provided that no Party shall impose
restrictions on capital transactions inconsistently with its specific commitments
regarding such transactions, except under Article XII of the GATS or at therequest of the International Monetary Fund.

Article 6.7
Denial of Benefits
In addition to Article XXVII of the GATS, a Party may, subject to priornotification and consultation, deny the benefits of this Chapter to the supply of a service
from or in the territory of another Party, if the Party establishes that the service is37

supplied by a service supplier that is owned or controlled by a person of a non-Party
and the denying Party adopts or maintains measures with respect to the non-Party thatprohibit transactions with the service supplier or that would be violated or
circumvented, if the benefits of this Chapter were accorded to the service supplier.

38

CHAPTER 7INVESTMENT PROMOTION AND COOPERATION

Article 7.1
Objectives
1.

The Parties recognise the importance of promoting and facilitating foreign
direct investment as a means for fostering economic growth, innovation andgreen transition.

2.

The Parties acknowledge the role of skilled workforce development to advancejob opportunities, including through cooperation in basic, higher and technicalvocational education and skill training, capacity building and exchange
programs.

3.

The Parties share the objectives that:(a)the EFTA States shall aim to increase foreign direct investment frominvestors of the EFTA States into India by 50 billion (US dollars) within
10 years from the entry into force of this Agreement and an additional
50 billion (US dollars) in the succeeding 5 years 6 7; and(b)

the EFTA States shall aim to facilitate the generation of 1 million jobs8
within 15 years in India from the entry into force of this Agreement,
resulting from inflows of foreign direct investment from investors of the
EFTA States into India.

6

Investments routed from outside EFTA States shall be taken into account if shown that the investments
are made by investors of an EFTA State. Investments routed through EFTA States by investors of nonParties either not established in an EFTA State, or established in an EFTA State but without substantial
business activities in an EFTA State, shall not be considered as EFTA investments.
7
The Parties recognise that India's rapid economic development over the last two decades, a time period
during which the country’s annual nominal GDP growth rate of around 9.5% in US dollars terms, wasaccompanied by a sustained increase of nominal foreign direct investment stocks from the EFTA States
into India (around 13% annual increase over the same time period), resulting in an foreign direct
investment stock of the EFTA States in India of 10.7 billion US dollars in 2022. Based on theseobservations and on future economic growth foreseen by India, the EFTA States aim to contribute tosustaining, and strengthening their, investment footprint in India. This shared objective is based on an
estimated nominal GDP growth rate of India in US dollars terms over the next 15 years in line with past
growth rates as referred to above, and the anticipated benefits of a full implementation of this Agreementby the Parties, from which the Parties anticipate an outperformance margin on investment of 3 percentage
points per year, in addition to estimated annual foreign direct investment increases from the EFTA States
based on past growth rates as referred to above.
8
For greater certainty, “jobs” shall mean direct employment in India which are clearly attributable to theforeign direct investment.

39

Article 7.2
Investment Promotion
1.

To achieve the shared objectives in paragraph 3 of Article 7.1, the EFTA Statesshall promote foreign direct investments9 from investors of the EFTA States
into India and generation of jobs in India as a result of such investments.

2.

In view of promotion activities for investments into India, India shall endeavour
to ensure a favourable climate for foreign direct investment, while taking into
account the need to identify, assess and mitigate potential risks for security or
public order.

Article 7.3
Cooperation Activities
1.

The Parties shall cooperate in areas of mutual interest with a view to benefittingfrom the complementarities of their economies and the opportunities createdunder this Agreement in terms of the envisaged job creation in accordance with
Article 7.1.

2.

Areas of cooperation may include:(a)appropriate means of identifying investment opportunities andinformation channels on investment regulations, with the aim offacilitating foreign direct investment;(b)elaboration of strategies and programs to identify key obstacles to andopportunities for investment in the Parties, with a focus on high valueadded sectors with linkages to regional and global value chains andpotential measures to remove obstacles;(c)furthering of an environment conducive to increased investment flows;
and technology collaboration10;(d)development of mechanisms for joint investments and ventures between
enterprises including micro, small and medium sized enterprises;(e)development and execution of public-private strategies for theidentification of investment opportunities in, and matchmaking ofinvestors between, the Parties;

9

For greater certainty, Parties recognise that sovereign wealth funds are excluded from the promotion
obligations undertaken by the EFTA States.
10

For greater certainty, technology collaboration does not require technology transfer. Technology
collaboration may include collaboration for facilitating and promoting cooperation between centres of
excellence, dialogue and exchange of information between the Parties, sharing best practices on industrial
competitiveness, innovation and technological enhancements, facilitation of MoUs among stakeholders
in the respective fields, and discussions on reducing barriers to such effective collaboration.

40

3.

(f)

facilitation of continued skill development, vocational and professional
education, and training;(g)encouragement of technical cooperation and facilitation of technologicalcollaboration in sectors of mutual interest for the development andenhancement of infrastructure and industrial capabilities; and(h)facilitation of partnerships among centres of excellence, government
agencies and expert institutes in fields of mutual interest. Such fields
may include earth science, telemedicine, STEM, healthcare,biotechnology, digital technology, renewable energy, clean technology
and sustainable metal making.

The Parties may cooperate pursuant to paragraph 2 through activities such as:(a)regular economic and scientific missions with high-ranking delegations;(b)annual high-level meetings between individual EFTA States and India
with the participation of the private sector;(c)regular investment promotion events, such as, at the World Economic
Forum with participation of the private sector;(d)sector-specific business roundtables;(e)roadshows in India and in the different EFTA States;(f)thematic expert exchanges;(g)

support for Invest India in setting up representations in some EFTAStates;(h)exchanges within the framework of existing town twinning
programmes;(i)

support for vocational education and training projects; and(j)other activities as mutually agreed by the Parties.

Article 7.4
Sub-Committee on Investment Promotion and Cooperation
1.

The Parties hereby establish a Sub-Committee on Investment Promotion andCooperation (hereinafter referred to as “Investment Sub-Committee"),consisting of government representatives of the Parties.

2.

The mandate of the Investment Sub-Committee is set out in Annex 7.A(Mandate of the Sub-Committee on Investment Promotion and Cooperation).

41

Article 7.5
Contact Points
1.

2.

Upon entry into force of this Agreement:(a)each Party shall designate a contact point responsible for facilitating
communication between the Parties regarding the implementation of this
Chapter; and(b)

India shall establish a dedicated EFTA-Desk to assist investors from the
EFTA States seeking to invest, investing or having invested, inparticular with any problems that may arise.

Each Party shall provide the other Parties with the contact details of its contact
point and shall promptly notify the other Parties of any change in contact point
designated in paragraph 1.

Article 7.6
Dispute Settlement
No Party shall have recourse to dispute settlement under Chapter 12 (Dispute
Settlement) for any matter arising under this Chapter.

Article 7.7
Review, Reporting and Three-tier Government-to-Government Consultations
1.

The Parties agree to a three-tier Government-to-Government consultations
procedure for resolution of differences raised in relation to the obligations inparagraph 1 of Article 7.2.

2.

The Investment Sub-Committee shall review progress towards the achievementof the shared objectives under paragraph 3 of Article 7.1.

3.

The first review by the Investment Sub-Committee shall be held no later than 5
years after entry into force of this Agreement. The second review by theInvestment Sub-Committee shall be held no later than 10 years after entry into
force of this Agreement. The final review by the Investment Sub-Committee
shall take place 15 years after entry into force of this Agreement. The Parties
may mutually agree on a different timeline or additional reviews.

4.

The Investment Sub-Committee shall prepare a report for each of the reviews.
If the Investment Sub-Committee finds that the progress towards achievementof the shared objectives in paragraph 3 of Article 7.1 has been insufficient, it
shall record the occurrence of any unforeseen events and other factors whichhave had a material bearing on the progress.

42

5.

In case of occurrence of any unforeseen circumstances like global pandemic,
war, geopolitical disruptions, financial crisis or sustained economic
underperformance, which have had a material bearing on the progress to achieve
the shared objectives, the Parties shall adjust the shared objectives accordingly
through an amendment of paragraph 3 of Article 7.1.

6.

Should the shared objectives under paragraph 3 of Article 7.1 not be reached by
the final review, and India considers that the EFTA States have not fulfilled theobligations to promote investments from investors of the EFTA States into India
as set out in paragraph 1 of Article 7.2, India may request consultations. The
Investment Sub-Committee shall be convened within 30 days of receipt ofIndia’s written request for such consultations.

7.

The scope of the consultations shall be limited to determining whether the
EFTA States have fulfilled their obligations under paragraph 1 of Article 7.2
related to the shared objectives under paragraph 3 of Article 7.1, and whereapplicable, to finding a mutually satisfactory solution between the Parties.

8.

The Investment Sub-Committee shall endeavour to settle issues within 60 days
from convening of the Investment Sub-Committee with due consideration to thefinal report. This period may be extended by no more than 1 year upon requestof a Party.

9.

If the Investment Sub-Committee determines that the obligations in paragraph
1 of Article 7.2 have not been fulfilled, the Investment Sub-Committee shallmake recommendations to the Joint Committee.

10.

If after the 1 year period from the request of consultations by India, the matterremains unresolved, then the Investment Sub-Committee shall refer the matterto the Joint Committee for consultation, with its recommendations.

11.

The Joint Committee shall begin consultation upon the receipt of the referral
from the Investment Sub-Committee under paragraph 10, with a view toreaching a mutually satisfactory solution. If the Joint Committee cannot resolve
the matter within 6 months, the same shall be referred to the representatives of
the EFTA States and India at the level of Ministers. Such representatives shallbe identified in writing.

12.

Such representatives of the EFTA States and India shall begin consultations nolater than 30 days from the receipt of the referral from the Joint Committee. The
representatives of the Parties shall take no more than 6 months from the ofreceipt of the referral from the Joint Committee, to arrive at a mutuallysatisfactory solution to the matter raised by the requesting Party. If the matter is
not resolved within 6 months, a grace period of an additional 3 years shall, uponrequest of a Party, be observed. The request shall state the grounds and may
outline possible actions from the EFTA States towards the achievement of theshared objectives under paragraph 3 of Article 7.1.

43

13.

Nothing in this Chapter shall require the Parties to disclose any information thatthey consider confidential. The Parties shall treat as confidential any
information designated as such by the Party providing the information.

Article 7.8
Remedial Measures
1.

If no mutually satisfactory solution subsequent to consultations underparagraphs 6 to 12 of Article 7.7 has been found and the grace period has elapsed
without having achieved the shared objectives under paragraph 3 of Article 7.1,
India may, notwithstanding any other provision under this Agreement, within 1
year, undertake temporary and proportionate remedial measures to rebalance
the concessions given to the EFTA States in the Schedule of Commitments
under the Chapter on Trade in Goods.

2.

India shall notify the EFTA States of the remedial measures it intends to take,the grounds for such remedial measures and when they will commence, no later
than 30 days before the date on which the remedial measures are due to takeeffect.

3.

Remedial measures shall be temporary and shall be:(a)terminated once the shared objectives set out in paragraph 3 of Article
7.1 have been achieved; or(b)modified or terminated pursuant to:(i) a mutually agreed solution between the Parties to such effect; or(ii) a decision to such effect pursuant to paragraph 4.

4.

If remedial measures continue beyond 3 years, a Party may request the Joint
Committee to examine whether the remedial measures should be modified or
terminated. Such request shall include the requesting Party’s grounds formodification or termination of remedial measures. The Joint Committee shallbegin consultations on such a request no later than 30 days from the receipt ofsuch a request. The Joint Committee shall aim to find a mutually agreed solution
within 6 months from the request by the Party. If the Joint Committee cannot
resolve the matter within 6 months, the same shall be referred to therepresentatives of the EFTA States and India at the level of Ministers. If the
Joint Committee or the representatives at the level of Ministers recommend
modification or termination of the remedial measures, the measures necessary
to modify or terminate shall be taken within the agreed time period in
accordance with the recommendation. Unless the remedial measures are
terminated, the Joint Committee shall thereafter examine the continuation or
modification of the remedial measures at a 2-year interval, following the sameprocedure, until the remedial measures have ceased to apply.

44

CHAPTER 8
PROTECTION OF INTELLECTUAL PROPERTY

Article 8.1
Protection of Intellectual Property
1.

The Parties shall provide for adequate, effective and non-discriminatory
protection of intellectual property rights, and enforcement of such rights against
infringement, counterfeiting and piracy, in accordance with the provisions of
this Article, and Annex 8.A (Protection of Intellectual Property) to thisAgreement, including the objectives specified under Article 7 of the Agreement
on Trade-Related Aspects of Intellectual Property Rights, set out in Annex 1C
to the WTO Agreement (hereinafter referred to as the “TRIPS Agreement”).

2.

The Parties shall accord to each other’s nationals, treatment no less favourable
than that they accord to their own nationals. Exemptions from this obligationmust be in accordance with the substantive provisions of Articles 3 and 5 of the
TRIPS Agreement.

3.

The Parties shall grant to each other’s nationals, treatment no less favourable
than that accorded to nationals of any other State. Exemptions from thisobligation must be in accordance with the substantive provisions of the TRIPS
Agreement, in particular Articles 4 and 5 thereof.

4.

The Parties agree to discuss and aim to resolve, within the mandate of the Joint
Committee set out in Article 13.1, issues relating to the implementation orapplication of this Chapter and Annex 8.A, with a view to avoiding or
remedying trade distortions.

45

CHAPTER 9
GOVERNMENT PROCUREMENT

Article 9.1
Government Procurement
1.

Recognising the importance of government procurement in furthering the
expansion of production and trade so as to promote growth and employment,
the Parties shall enhance mutual understanding of their government
procurement laws, regulations, and agreements.

2.

The following contact point shall serve to facilitate communication between theParties on any matter regarding government procurement:

3.

(a)

for India: FT (Europe) Division, Department of Commerce, Ministry ofCommerce and Industry; and(b)for the EFTA States: the EFTA Secretariat.

The Parties shall review this Article in the Joint Committee within 3 years fromthe entry into force of this Agreement, and examine the possibility of developing
and deepening their cooperation under this Agreement.

46

CHAPTER 10
COMPETITION

Article 10.1
Anticompetitive Behaviour Affecting Trade1.

The following practices of enterprises are incompatible with the proper
functioning of this Agreement in so far as they may adversely affect trade
between an EFTA State and India:(a)agreements between enterprises, decisions by associations of enterprises
and concerted practices between enterprises which have as their object
or effect the prevention, restriction or distortion of competition; and(b)abuse by one or more enterprises of a dominant position in the territoryof a Party.

2.

The provisions of paragraph 1 shall also apply to the activities of public
enterprises, and enterprises to which the Parties grant special or exclusive rights,
in so far as the application of these provisions does not obstruct theperformance, in law or in fact, of the particular public tasks assigned to them.

3.

The provisions of paragraphs 1 and 2 shall not be construed so as to create any
direct obligations for enterprises.

Article 10.2
Cooperation
1.

The Parties involved may, through their competent authorities, cooperate intheir dealings with anticompetitive practices as outlined in paragraph 1 of
Article 10.1, with the aim of putting an end to such practices or their adverse
effects on trade. Cooperation may include exchange of non-confidential
information that is available to the Parties.

2.

The Parties may engage in cooperation activities on general matters ofcompetition law and policy. Upon request of a Party, the requested Party may
make available to the requesting Party public information concerning its
competition laws and related enforcement activities.

Article 10.3
Consultations
1.

Upon request of a Party, the Parties may enter into consultations regarding any
matter arising under this Chapter, including the effects of the practices outlined
in paragraph 1 of Article 10.1 on trade. In its request, the Party shall submit all
relevant non-confidential information to discuss this matter, and if relevant, howsuch a practice affects trade between the Parties.

47

2.

To facilitate discussion of the matter that is the subject of the consultations, eachParty may provide relevant non-confidential information to the Joint
Committee.

Article 10.4
Non-Application of Dispute Settlement
No Party shall have recourse to Chapter 12 (Dispute Settlement) for any matterarising under this Chapter.

Article 10.5
Review
The Parties may review the provisions of this Chapter 2 years from the entry
into force of this Agreement.

48

CHAPTER 11
TRADE AND SUSTAINABLE DEVELOPMENT

Article 11.1
Scope, Context and Objectives
1.

Recalling the Rio Declaration on Environment and Development and theAgenda 21 adopted by the United Nations Conference on Environment andDevelopment in Rio de Janeiro on 14 June 1992, the Johannesburg Declaration
on Sustainable Development and its Plan of Implementation adopted in
Johannesburg on 4 September 2002, the International Labour Organization(hereinafter referred to as “ILO”) Declaration on Fundamental Principles andRights at Work (1998) adopted by the International Labour Conference at its
86th Session in Geneva on 18 June 1998, as amended in 2022 (hereinafterreferred to as “ILO Declaration on Fundamental Principles and Rights at
Work”), the Ministerial Declaration on Generating Full and Productive
Employment and Decent work for all and its Impact on Sustainable
Development adopted by the United Nations Economic and Social Council of
2006, in Geneva on 5 July 2006, the ILO Declaration on Social Justice for a
Fair Globalization (2008) adopted by the International Labour Conference atits 97th Session in Geneva on 10 June 2008, as amended in 2022, the Outcome
Document of the UN Conference on Sustainable Development of 2012 entitled“The Future We Want” endorsed by the UN General Assembly Resolution
66/288 adopted on 27 July 2012 (hereinafter referred to as “the RIO+20
Outcome Document “The Future We Want”), the UN 2030 Agenda for
Sustainable Development, adopted by the UN General Assembly Resolution
70/1 on 25 September 2015 and its Sustainable Development Goals and themultilateral environmental agreements to which the Parties are party, the Parties
reaffirm their commitment to pursue the objective of sustainable development,
whose pillars, economic development, social development and environmental
protection are mutually supportive, interdependent and essential requirementsof sustainable development.

2.

The Parties agree to promote international trade in such a way as to contributetowards sustainable development for eradicating poverty and hunger, including
towards broad-based, sustained and inclusive economic growth, social
development and environmental protection, and to work to integrate and reflect
this objective in their trade relationship.

3.

Accordingly, the Parties emphasise that it is their aim to strengthen their traderelations and cooperation in ways that promote sustainable development, and it
is not their intention in this Chapter to harmonise the labour or environment
standards of the Parties.

4.

For the purposes of this Chapter, for India, “laws and regulations” mean an
Act of the Parliament of India or delegated legislation framed pursuant to an
Act of the Parliament of India, which is enforceable by action of the Central orUnion level of Government.

49

Article 11.2
Right to Regulate and Upholding Levels of Protection
1.

Recognising the right of each Party, in a manner consistent with the provisionsof this Chapter, to set its domestic sustainable development policies andpriorities, to establish its own levels of labour and environmental protection,and to adopt or modify accordingly its relevant laws and policies, each Party
shall seek to ensure that its laws, policies and practices provide for andencourage achieving sustainable development objectives.

2.

The Parties are committed not to derogate from or, through a sustained orrecurring course of action or inaction, fail to effectively enforce their respective
environmental and labour laws in a manner affecting trade between the Parties.

3.

The Parties stress that environmental and labour measures shall not be appliedin a manner that would constitute a means of arbitrary or unjustifiable
discrimination between the Parties or a disguised restriction on trade.

4.

The Parties recognise the value of international agreements on labour and theenvironment as means to address global and regional environmental and social
challenges. In this context, the Parties stress that neither labour nor
environmental issues shall be used for protectionist trade purposes. The Parties
note that their comparative advantage should in no way be called into question.

Article 11.3
Promoting Environmentally Sustainable and Inclusive Growth
1.

The Parties recognise that trade should contribute towards broad-based,sustainable and inclusive growth, which is necessary to alleviate poverty, raise
standards of living, ensure full employment and a large and steadily growing
volume of real income and effective demand, and expand the production of andtrade in goods and services.

2.

The Parties acknowledge the importance of incorporating a gender perspectivein the promotion of inclusive economic development and that genderresponsive policies are key elements to enhance the participation of all in theeconomy and international trade in order to achieve sustainable economic
growth.

3.

The Parties reaffirm their commitment to implement the international
agreements pertaining to gender equality or non-discrimination to which they
are a party.

4.

The Parties further recognise that in accordance with the objective of sustainable
development, they shall allow for the optimal use of the world’s resources,
seeking both to protect and preserve the environment, and to enhance the meansfor doing so in a manner consistent with their respective needs and concerns at
different levels of economic development.

50

5.

In this regard, the Parties recall that the Rio+20 Outcome Document “The
Future We Want” provides sufficient flexibility and policy space for the Parties
to make their own choices out of a broad menu of options and define their paths
towards sustainable development based on each Party’s stage of development,
national circumstances and priorities.

6.

Recognising the importance of cooperation and supportive measures, the Parties
reaffirm their commitment to implement their respective commitments
regarding cooperation and supportive measures, such as financial,technological, technical or capacity building support, as relevant, under theinternational agreements referred to in this Chapter.

Article 11.4
Multilateral Environmental Agreements
1.

The Parties reaffirm their adherence to the principles reflected in theinternational environmental instruments referred to in Article 11.1.

2.

The Parties reaffirm their commitment to implement the multilateralenvironmental agreements to which they are a party.

Article. 11.5
Climate Change
1.

The Parties recognise the importance of achieving the objectives and goals of
the United Nations Framework Convention on Climate Change, done at New
York on 09 May 1992 (hereinafter referred to as “UNFCCC”) and the Paris
Agreement, done at Paris on 12 December 2015, in order to address the urgent
threat of climate change, based on best available science and reflecting theprinciples of the UNFCCC and the Paris Agreement, including equity and theprinciple of common but differentiated responsibilities and respective
capabilities, in light of different national circumstances.

2.

The Parties reaffirm their commitment to implement their respective obligations
and commitments under the UNFCCC and the Paris Agreement.

3.

Pursuant to paragraph 1, the Parties shall endeavour to cooperate bilaterally, andin other fora, as appropriate.

Article 11.6
International Labour Organisation Standards
1.

The Parties, in accordance with their obligations as members of the ILO and theILO Declaration on Fundamental Principles and Rights at Work, commit torespect, promote and realise, in good faith, the fundamental principles and rights
at work embodied in the fundamental ILO Conventions, namely:

51

2.

(a)

freedom of association and the effective recognition of the right tocollective bargaining;(b)the elimination of all forms of forced or compulsory labour;(c)the effective abolition of child labour;(d)the elimination of discrimination in respect of employment andoccupation; and(e)a safe and healthy working environment.

The Parties affirm their commitment to effectively implement in their laws andpractices the ILO Conventions which they have respectively ratified. The
Parties will make efforts towards ratifying the fundamental ILO Conventions in
a promotional and flexible manner without time limits and according to the ILO
Declaration on Social Justice for a Fair Globalization of 2008.

Article 11.7
Cooperation, Information Exchange and Experience Sharing on Trade andSustainable Development
In view of the objectives set out in Article 11.1, the Parties agree to enhancetheir cooperation in exchanging information and experiences in areas of mutual interest,
such as:(a)best practices relating to corporate social responsibility;(b)

relevant aspects of the ILO Decent Work Agenda, such as labour
statistics, and labour market developments;(c)identifying and addressing skill gaps;(d)human resources development, lifelong learning, skilling, upskilling andre-skilling to facilitate a just transition and decent work in accordancewith the ILO Guidelines on a Just Transition towards environmentally
sustainable economies and societies for all adopted by the Tripartite
Meeting of Experts in Geneva on 5 to 9 October 2015;(e)best practices in promoting integrated and sustainable management of
natural resources and ecosystems, including conservation andsustainable use of biodiversity;(f)best practices to promote sustainable consumption and production
patterns;(g)cooperation between enterprises in relation to goods, services andtechnologies that contribute to sustainable development;

52

(h)

policy frameworks conducive to the deployment of best available
technologies for sustainable development, including with regard to thepromotion of eco-innovation, research activities, dissemination of
results, and efforts to ensure that such technologies are available inpublic domain and are accessible at affordable prices; or(i)regulatory frameworks to promote sustainable renewable energy andresource and energy efficient products and services.

Article 11.8
Cooperation in International ForaThe Parties shall strive to strengthen their cooperation on labour andenvironmental issues of mutual interest in relevant bilateral, regional and multilateralfora in which they participate.

Article 11.9
Contact Points
1.

Each Party shall designate a contact point responsible for coordinating
implementation of this Chapter.

2.

Each Party shall provide the other Parties with the contact details of its contact
points and shall promptly notify the other Parties of any change in contact point.

Article 11.10
Security Exception
Nothing in this Chapter shall be construed to prevent the Parties from taking
any action or not disclosing any information that it considers necessary for theprotection of its essential domestic security interests.

Article 11.11
Non-Application of Dispute Settlement
No Party shall have recourse to Chapter 12 (Dispute Settlement) for any matterarising under this chapter.

Article 11.12
Sub-Committee on Sustainability
1.

The Parties hereby establish a Sub-Committee on Sustainability (hereinafterreferred to as “Sustainability Sub-Committee”), composed of government
representatives of the Parties.

53

2.

The Sustainability Sub-Committee shall meet within one year of the entry into
force of this Agreement, and thereafter as mutually agreed.

3.

The Sustainability Sub-Committee shall:

4.

(a)

monitor and review the implementation and operation of this Chapter;(b)

discuss, facilitate, and monitor areas and means of cooperation andsupportive measures, as appropriate, under this Chapter;(c)report to the Joint Committee with respect to its activities, as mutuallyagreed; and(d)perform any other functions the Parties may decide.

The Sustainability Sub-Committee shall be chaired jointly by an EFTA Stateand India and may make recommendations, or refer matters, by consensus, to
the Joint Committee.

Article 11.13
Consultations
1.

The Parties shall at all times endeavour to make every effort throughcooperation, dialogue, consultations and exchange of information to address
any matter arising under this Chapter.

2.

A Party may request consultations (hereinafter referred to as the “requesting
party") with another Party (hereinafter referred to as the “responding party”)
regarding any matter arising under this Chapter by delivering a written request
to the responding party’s contact point. The requesting party shall set out thereasons for the request and state the matter at issue, to enable the responding
party to respond. The other Parties shall be informed that a request for
consultations has been submitted.

3.

The responding party shall respond to the request in writing no later than 90days after the receipt of the request. The period for responding to the request
may be extended by a further period of 30 days from the request of the
responding party.

4.

The requesting party and the responding party (hereinafter referred to as the“consulting parties”) shall enter into consultations in good faith. Suchconsultations shall be held between the appropriate government representatives,
as respectively designated by the consulting parties.

5.

Unless the consulting parties agree otherwise, the consulting parties shall enter
into consultations promptly, and no later than 150 days after the receipt of therequest by the responding party.

54

6.

Consultations shall take place in the Joint Committee, unless the consulting
parties agree otherwise.

7.

The consulting parties may agree to seek advice from any expert or body they
deem appropriate, to assist them in the consultations.

8.

The consulting parties shall make every effort to arrive at a mutually agreed
solution to the matter, which may include appropriate cooperative activities.

9.

Consultations may be held in person or by other technological means available.

10.

Consultations under this Article, the outcomes, and the positions taken by theParties during such consultations, shall be confidential. Notwithstanding thepreceding sentence, the outcome of these consultations shall be made public
unless the consulting parties agree otherwise. Where the outcome of
consultations is made public, this shall be through a jointly agreed report.

11.

Each Parties shall treat as confidential any information exchanged in the
consultations which another Party has designated as confidential.

12.

Notwithstanding paragraphs 1 to 11, where the matter arising under this Chapter
regards compliance with obligations under a multilateral environmental
agreement to which the consulting parties are a party, the requesting party
should, where appropriate, address the matter through the consultative
procedure or other procedures under that multilateral environmental agreement.

Article 11.14
Review
The Parties shall periodically review this Chapter. Each Party may, as
appropriate, take into account views expressed by its relevant stakeholders in relation
to such review.

55

CHAPTER 12DISPUTE SETTLEMENT

Article 12.1
Scope and Coverage
1.

Unless otherwise specified in this Agreement, the provisions of this Chapter
shall apply with respect to the avoidance or settlement of disputes between theParties11 concerning their rights and obligations under this Agreement.

2.

The rules and procedures set out in this Chapter may be waived, varied or
modified by mutual agreement between the parties to the dispute.

3.

An arbitration panel shall interpret the provisions of this Agreement inaccordance with customary rules of interpretation of public international law.

4.

The rulings of an arbitration panel cannot add to or diminish the rights andobligations provided for in this Agreement.

5.

In a situation where a dispute regarding the same matter is covered within thescope of this Agreement and under the WTO Agreement, the complaining Party
may select the forum in which to settle the dispute and such forum selected by
the complaining Party shall be used to the exclusion of any other forum forsettlement of such a dispute. The complaining Party shall be deemed to haveselected a forum when it has requested the constitution of an arbitration panelin accordance with Article 12.4 of this Agreement or by a Party’s request for
the establishment of a panel under Article 6 of the WTO Understanding on
Rules and Procedures Governing the Settlement of Disputes. Before a Party
initiates dispute settlement proceedings under the WTO Agreement against
another Party, that Party shall notify all other Parties of its intention.

Article 12.2
Good Offices, Conciliation or Mediation
1.

The Parties may at any time agree to good offices, conciliation or mediation.
They may begin at any time and be terminated by either Party at any time.

2.

If the Parties agree, procedures for good offices, conciliation or mediation may
continue while the dispute proceeds for resolution before an arbitration panel
appointed under this Chapter.

3.

All proceedings under this Article shall be confidential and without prejudice tothe rights of either Party in any further proceedings under this Chapter oranother fora.

For the purposes of this Chapter, the terms “Party”, “party to the dispute”, “complaining Party” and“Party complained against” can denote one or more Parties.
1156

Article 12.3
Consultations
1.

Each Party shall accord adequate opportunity for consultations regarding any
representations made by another Party concerning a dispute referred to inparagraph 1 of Article 12.1.

2.

Any request for consultations shall be submitted in writing to the Party
complained against and shall give the reasons for the request, including
identification of the measures at issue and an indication of the legal basis of thecomplaint. The complaining Party shall at the same time notify the other Parties
in writing thereof.

3.

If a request for consultations is made pursuant to this Article, the Party to which
the request is made shall reply to the request within 10 days from the receipt
and shall enter into consultations within a period of no more than 30 days fromthe receipt of the request, with a view to reaching a mutually satisfactory
solution. Consultations on urgent matters, including those on perishable goods,
shall commence within 15 days from the receipt of the request for consultations.

4.

The Parties shall make every effort to reach a mutually satisfactory resolutionof any matter through consultations. To this end, the Parties shall:

5.

(a)

provide sufficient information as may be reasonably available at thestage of consultations to enable a full examination of how the measuremight affect the operation of this Agreement; and(b)treat as confidential any information exchanged in the consultations
which the other Parties have designated as confidential.

Consultations shall take place in the Joint Committee, unless the Parties making
and receiving the request for consultations agree otherwise. The parties to thedispute shall inform the other Parties of any mutually agreed resolution of thematter.

Article 12.4
Establishment of the Arbitration Panel1.

If the consultations referred to in Article 12.3 fail to settle a dispute within 60
days, or 30 days in relation to urgent matters, including those on perishable
goods, or if the Party to which the request is made does not reply within 10 daysor does not enter into consultations within 30 days, or within 15 days for urgent
matters, from the receipt of the request for consultations by the Party
complained against, the dispute may be referred to an arbitration panel by meansof a written request from the complaining Party to the Party complained against.
A copy of this request shall be communicated to the other Parties so that they
may determine whether to participate in the dispute.

57

2.

The request for arbitration shall identify the specific measure at issue andprovide a brief summary of the legal basis of the complaint.

3.

Unless the parties to the dispute otherwise agree within 20 days from the receiptof the request for the establishment of the arbitration panel, the terms ofreference for the arbitration panel shall be:“To examine, in the light of the relevant provisions of this Agreement,
the matter referred to in the request for the establishment of anarbitration panel pursuant to Article 12.4 and to make findings of law
and fact together with the reasons therefor, as well as recommendations,
if any, for the resolution of the dispute and the implementation of theruling.”4.

Where more than one Party requests the establishment of an arbitration panel
relating to the same matter or where the request involves more than one Party
complained against, a single arbitration panel should whenever feasible beestablished to examine complaints relating to the same matter.

5.

A Party which is not a party to the dispute shall be entitled, on delivery of awritten notice to the parties to the dispute, to make written submissions to thearbitration panel, receive written submissions, including annexes, from theparties to the dispute, attend hearings and make oral statements.

Article 12.5
Appointment of Members of the Arbitration Panel1.

The arbitration panel shall comprise three members.

2.

Within 30 days from the receipt of the request pursuant to Article 12.4, eachparty to the dispute shall appoint one member of the arbitration panel.

3.

The two appointed members shall agree on the appointment of the third member
within 30 days of the appointment of the second member. The third member,
who shall serve as the chair of the arbitration panel, shall not be a national or
permanent resident of, nor be employed or previously have been employed by,either party to the dispute. The date of establishment of the arbitration panel
shall be the date on which the chair of the arbitration panel is appointed.

4.

If all three members have not been appointed within 60 days from the receipt of
the notification referred to in paragraph 2, then within a further period of 30days, the necessary appointments shall be made by the Director-General of the
WTO at the request of any party to the dispute. Where the appointment of themembers of the arbitration panel by the Director-General of the WTO is notmade within the specified period, the parties to the dispute shall within the next
10 days exchange lists comprising four nominees each, in case the chair of thearbitration panel needs to be selected and a list of four nominees for the selectionof their member of the arbitration panel, in case a party to the dispute fails to
appoint its member of the arbitration panel.

58

5.

The members of the arbitration panel shall then be appointed in the presence ofthe parties to the dispute by draw of lot from the lists within 10 days from theexchange of their respective lists. If a party to the dispute fails to submit its listof nominees, the members of the arbitration panel shall be appointed by drawof lot from the list already submitted by the other party to the dispute.

6.

All members of the arbitration panel shall have expertise or experience in law,international trade, other matters covered by this Agreement or the resolution of
disputes arising under international trade agreements, and shall be chosen
strictly on the basis of objectivity, reliability and sound judgment. All members
shall be independent of, and not be affiliated with or take instructions from, any
Party, nor have dealt with the case in any capacity.

7.

Any member of the arbitration panel may be challenged if circumstances giverise to justifiable doubts as to the member’s objectivity, reliability, soundjudgment or independence. If a party to the dispute does not agree with thechallenge or the challenged member of the arbitration panel does not withdraw,
the party making the challenge may request the Director-General of the WTO
to decide on the challenge. If the Director-General of the WTO is unable to act
or is a national or permanent resident of a Party, the Party making the challenge
may request the Deputy Director-General of the WTO, or the next person in line
who is not a national or permanent resident of a Party, to make a decision on
the challenge.

8.

If a member of the arbitration panel resigns, is removed or becomes unable toact, a successor shall be appointed in the same manner as prescribed for theappointment of the original member. The work of the arbitration panel shall besuspended pending appointment of the successor.

Article 12.6
Procedures of the Arbitration Panel
1.

Unless the parties to the dispute otherwise agree, the procedure of the arbitration
panel shall be conducted in accordance with the Rules of Procedure set out inAnnex 12.A (Rules of Procedure for the Arbitration Panel Proceedings).

2.

The arbitration panel shall examine the matter referred to it in the request for
the establishment of an arbitration panel in the light of the relevant provisionsof this Agreement, interpreted in accordance with the rules of interpretation of
public international law.

3.

The venue for the proceedings of the arbitration panel shall be decided bymutual agreement between the parties to the dispute. If there is no agreement,
the venue for the proceedings of the arbitration shall be in the EFTA State
complained against, if the complaining Party is India, and in India, if thecomplaining Party is an EFTA State.

4.

The language of any proceeding shall be English.

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5.

The hearings of the arbitration panel shall be open to the public, if the parties tothe dispute mutually agree.

6.

There shall be no ex parte communications with the arbitration panel concerning
matters under its consideration.

7.

A Party’s written submissions, written versions of oral statements and responses
to questions put by an arbitration panel, shall, at the same time as they aresubmitted to the arbitration panel, be transmitted by that Party to the other party
to the dispute.

8.

The Parties shall treat as confidential the information submitted by any otherParty to the arbitration panel which that Party has designated as confidential.

9.

Decisions of the arbitration panel shall be taken by a majority of its members.
Any member may furnish separate opinions on matters not unanimously agreed.
The arbitration panel may not disclose which members are associated withmajority or minority opinions.

Article 12.7
Panel Reports
1.

The arbitration panel should, as a general rule, submit an initial reportcontaining its findings and rulings to the parties to the dispute not later than 90days from the establishment of the arbitration panel. In no case should it do solater than five months from this date. A party to the dispute may submit writtencomments to the arbitration panel on its initial report within 14 days from thereceipt of the report. The arbitration panel shall take due regard of thesecomments and present to the parties to the dispute a final report within 30 days
from their receipt of the initial report.

2.

In cases of urgency, including those involving perishable goods, the arbitration
panel shall make every effort to notify its ruling within 60 days from its
establishment. Under no circumstances should it take longer than 75 days fromits establishment.

3.

The final report, as well as any report under Articles 12.9 and 12.10, shall be
communicated to the Parties. The reports shall be made public, unless the parties
to the dispute decide otherwise.

4.

Any decision or ruling of the arbitration panel under any provision of this
Chapter shall be final and binding upon the parties to the dispute.

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Article 12.8
Suspension or Termination of Arbitration Panel Proceedings
1.

Where the parties to the dispute agree, the arbitration panel may suspend its
work at any time for a period not exceeding 12 months from the date of suchagreement. If the work of the arbitration panel has been suspended for morethan 12 months, the authority of the arbitration panel shall lapse unless theparties to the dispute agree otherwise.

2.

The parties to the dispute may agree to terminate the proceedings of anarbitration panel established under this Agreement, in the event that a mutuallysatisfactory solution to the dispute has been found by jointly notifying the chairof that arbitration panel.

3.

Before the arbitration panel submits its final report, it may at any stage of theproceedings propose to the parties to the dispute that the dispute be settled
amicably.

4.

A complaining Party may withdraw its complaint at any time before the final
report is issued. Such withdrawal is without prejudice to its right to introduce a
new complaint regarding the same issue at a later point in time.

Article 12.9
Implementation of Final Panel Report
1.

The Party concerned shall promptly comply with the ruling in the final report.
If it is impracticable to comply immediately, the parties to the dispute shallendeavour to agree on a reasonable period of time to do so. In the absence ofsuch agreement within 45 days from the issuance of the final report, either party
to the dispute may request the original arbitration panel to determine the lengthof the reasonable period of time, in light of the particular circumstances of thecase.12 The ruling of the arbitration panel should be given within 30 days fromthat request.

2.

The Party concerned shall notify the other party to the dispute of the measure
adopted in order to comply with the ruling in the final report, as well as provide
a detailed description of how the measure ensures compliance sufficient to allow
the other party to the dispute to assess the measure.

3.

In case of disagreement as to the existence of a measure complying with theruling in the final report or to the consistency of that measure with the ruling,such dispute shall be decided by the arbitration panel before compensation canbe sought or suspension of benefits can be applied in accordance with Article
12.10. The ruling of the arbitration panel shall normally be rendered within 60
days.

12

A guideline for the arbitration panel should be that the reasonable period of time to comply with its
ruling should not exceed 15 months from the date of notification of the ruling.

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Article 12.10
Compensation and Suspension of Benefits
1.

If the Party complained against does not comply with either of the rulings of thearbitration panel referred to in Article 12.9, or notifies the complaining Party
that it does not intend to comply with the final report, that Party shall, uponrequest by the complaining Party, enter into consultations with a view toagreeing on mutually acceptable compensation. If no such agreement has beenreached within 20 days from the date of the request, the complaining Party shallbe entitled to suspend the application of benefits granted under this Agreement
but only equivalent to those affected by the measure that the arbitration panel
has found to be inconsistent with this Agreement.

2.

In considering what benefits to suspend, the complaining Party should first seek
to suspend benefits in the same sector or sectors as that affected by the measurethat the arbitration panel has found to be inconsistent with this Agreement. The
complaining Party that considers it is not practicable or effective to suspend
benefits in the same sector or sectors may suspend benefits in other sectors.

3.

The complaining Party shall notify the other party to the dispute of the benefits
which it intends to suspend, the grounds for such suspension and whensuspension will commence, no later than 30 days before the date on which thesuspension is due to take effect. Within 15 days from that notification, the Party
complained against may request the original arbitration panel to rule on whether
the benefits which the complaining Party intends to suspend are equivalent tothose affected by the measure found to be inconsistent with this Agreement, andwhether the proposed suspension is in accordance with paragraphs 1 and 2. The
ruling of the arbitration panel shall be given within 45 days from that request.
Benefits shall not be suspended until the arbitration panel has issued its ruling.

4.

Compensation and suspension of benefits shall be temporary measures and shall
only be applied by the complaining Party until the measure found to beinconsistent with this Agreement has been withdrawn or amended so as to bringit into conformity with this Agreement, or until the parties to the dispute haveresolved the dispute otherwise.

5.

Upon request of a party to the dispute, the original arbitration panel shall ruleon the conformity with the final report of any implementing measures adopted
after the suspension of benefits and, in light of such ruling, whether thesuspension of benefits should be terminated or modified. The ruling of thearbitration panel shall be given within 30 days from that request.

6.

Unless otherwise specified in this Agreement, the dispute settlement chapter
may be invoked in respect of measures affecting the observance of thisAgreement taken by the regional and local governments or authorities of theParties. When the arbitration panel has ruled that a provision of this Agreement
has not been observed, the responsible Party shall take such reasonablemeasures as may be available to it to ensure its observance. The provisions

62

relating to compensation and suspension of benefits apply in cases where it has
not been possible to secure such observance.

Article 12.11
Other Provisions
1.

Whenever possible, the arbitration panel referred to in Articles 12.9 and 12.10
shall comprise the same arbitrators who issued the final report. If a member ofthe original arbitration panel is unavailable, the appointment of a replacement
arbitrator shall be conducted in accordance with the selection procedure for theoriginal arbitrators.

2.

Each party to the dispute shall bear the costs of its appointed arbitrator and its
own expenses and legal costs. The costs of the chair of the arbitration panel andother expenses associated with the conduct of its proceedings shall be borne inequal parts by the parties to the dispute.

3.

All time frames stipulated in this Chapter may be reduced, waived or extended
by mutual agreement of the parties to the dispute.

Article 12.12
Contact Points
Each Party shall designate contact points in order to facilitate communications
between the Parties on matters covered by this Chapter and the rules contained in Annex
12.A (Rules of Procedure for the Arbitration Panel Proceedings) and shall provide
details of such contact points to the other Parties. The Parties shall notify each otherpromptly of any changes.

63

CHAPTER 13
INSTITUTIONAL PROVISIONS

Article 13.1
The Joint Committee
1.

The Parties hereby establish the Joint EFTA-India Committee comprising
representatives of each Party. The Parties shall be represented by senior
government officials delegated by them for this purpose.

2.

The Joint Committee shall:(a)supervise and review the implementation of this Agreement;(b)consider the possibility of further removal of barriers to trade and otherrestrictive measures concerning trade between the EFTA States andIndia;(c)oversee the further elaboration of this Agreement;(d)supervise the work of all sub-committees and working groups
established under this Agreement;(e)endeavour to resolve disputes that may arise regarding the interpretation
or application of this Agreement; and(f)consider any other matter that may affect the operation of thisAgreement.

3.

The Joint Committee may decide to set up such sub-committees and working
groups as it considers necessary to assist it in accomplishing its tasks. Except
where specifically provided for in this Agreement, the sub-committees andworking groups shall work under a mandate established by the Joint Committee.

4.

The Joint Committee may take decisions as provided for in this Agreement. On
all matters related to this Agreement the Joint Committee may makerecommendations.

5.

The Joint Committee shall take decisions and make recommendations byconsensus.

6.

The Joint Committee shall meet within one year from the entry into force of thisAgreement. Thereafter, it shall meet whenever necessary but normally once
every two years. The regular meetings of the Joint Committee shall be chaired
jointly by one of the EFTA States and India. The Joint Committee shall establish
its rules of procedure.

7.

A Party may request at any time, through a notice in writing to the other Parties,
that a special meeting of the Joint Committee be held. Such a meeting shall take64

place within 30 days from receipt of the request, unless the Parties agree
otherwise.

Article 13.2
Contact Points
Upon entry into force of this Agreement, each Party shall designate a contact
point to facilitate communications between the Parties on any matter relating to thisAgreement and shall promptly notify the other Parties of any change in contact point.

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CHAPTER 14
FINAL PROVISIONS

Article 14.1
Fulfilment of Obligations
The Parties shall take any general or specific measures required to fulfil their
obligations under this Agreement.

Article 14.2
Annexes, Appendices and footnotes
The Annexes to this Agreement, including their Appendices, and footnotes are
an integral part thereof.

Article 14.3
Review Clause1.

Two years after the entry into force of this Agreement, the Parties shall review
this Agreement with a view to furthering its objectives. Thereafter, the Parties
shall conduct biennial reviews as considered mutually appropriate.

2.

If after the date of entry into force of this Agreement a Party concludes anagreement notified under Article XXIV of the GATT 1994 or Article V of the
GATS, it shall, upon request from another Party, enter into negotiations to
consider further developing and deepening the cooperation under thisAgreement. Any such incorporation shall be based on the principle ofreciprocity, and maintain the overall balance of commitments undertaken byeach Party under this Agreement.

Article 14.4
Amendments
1.

Any Party may submit proposals for amendments to this Agreement. Any suchproposal shall be submitted to the Joint Committee for consideration andrecommendation.

2.

Amendments to this Agreement, as recommended by the Joint Committee, shallbe submitted to the Parties for ratification, acceptance or approval in accordancewith their domestic legal requirements.

3.

Unless otherwise agreed by the Parties, amendments shall enter into force on
the first day of the third month following the deposit of the last instrument of
ratification, acceptance or approval.

66

4.

5.

Notwithstanding paragraphs 2 and 3, amendments relating only to the following
Annexes, Appendices and Articles may be made by the Joint Committee
through adoption of a decision:(a)paragraph 2 of Article 2.12;(b)paragraph 2 of Article 4.15;(c)paragraph 2 of Article 5.14;(d)paragraph 3 of Article 11.12;(e)paragraph 2 of Article 23 in Annex 2.A (Rules of Origin);(f)Appendix 2.A.1 (Product Specific Rules of Origin) to Appendix 2.A(Rules of Origin);(g)Appendix 2.A.2 (Origin Declaration) to Appendix 2.A (Rules ofOrigin);(h)Appendix 2.A.3 (Origin Certificate) to Appendix 2.A (Rules of Origin);(i)

Appendix 2.A.4 (Movement Certificate EUR.1) to Appendix 2.A (Rulesof Origin);(j)paragraph 2 of Article 19 in Annex 2.B (Trade Facilitation); and(k)Annex 12.A (Rules of Procedures for the Arbitration Panel
Proceedings).

The text of the amendments, the instruments of ratification, acceptance orapproval, and decision of the Joint Committee referred to in paragraph 4 shallbe deposited with the Depositary.

Article 14.5
Accession
1.

Any state becoming a member of the European Free Trade Association may
accede to this Agreement on terms and conditions to be agreed upon by theParties and the acceding state. The instrument of accession shall be submitted
to the Parties and the acceding state for ratification, acceptance or approval inaccordance with their respective legal requirements. The instrument ofaccession and the instruments of ratification, acceptance or approval shall bedeposited with the Depositary.

2.

In relation to an acceding state, this Agreement shall enter into force on the firstday of the third month following the deposit of its instrument of accession, orthe approval of the terms of accession by the existing Parties, whichever is later.

67

Article 14.6
Withdrawal and Expiration
1.

Each Party may withdraw from this Agreement by means of a written
notification to the Depositary. The withdrawal shall take effect six months after
the date on which the notification is received by the Depositary.

2.

If India withdraws, this Agreement shall expire when its withdrawal becomes
effective.

3.

Any EFTA State which withdraws from the Convention establishing theEuropean Free Trade Association shall ipso facto on the same day as thewithdrawal takes effect cease to be a Party to this Agreement. A copy of thenotification of withdrawal from the Convention shall promptly be submitted tothe other Parties.

4.

If one of the EFTA States withdraws from this Agreement, a meeting of theremaining Parties shall be convened to discuss the issue of the continued
existence of this Agreement.

Article 14.7
Entry into Force1.

This Agreement is subject to ratification, acceptance or approval in accordancewith the respective legal requirements of the Parties. The instruments ofratification, acceptance or approval shall be deposited with the Depositary.

2.

If its respective legal requirements permit, any EFTA State or India may apply
this Agreement provisionally, pending its entry into force. Provisional
application of this Agreement under this paragraph shall be notified to the
Depositary.

3.

This Agreement shall enter into force on the first day of the third monthfollowing the date on which India and all EFTA States have deposited theirinstrument of ratification, acceptance or approval with, or notified provisional
application to, the Depositary.

Article 14.8
Depositary
The Government of Norway shall act as Depositary.

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IN WITNESS WHEREOF the undersigned, being duly authorised thereto, havesigned this Agreement.
Done at New Delhi, India this 10th day of March in 2024, in two originals in the English
language. One original shall be deposited with the Government of Norway. The
Depositary shall transmit certified copies to all the Parties.

For the Government of Iceland

For the Government of
the Republic of India…………………………………
Bjarni Benediktsson
Minister for Foreign Affairs…………………………………
Piyush Goyal
Minister of Commerce and Industry

For the Government of the
Principality of Liechtenstein…………………………………
Dominique Hasler
Minister of Foreign Affairs, Education andSport

For the Government of theKingdom of Norway…………………………………
Jan Christian Vestre
Minister of Trade and Industry

For the Government of the
Swiss Confederation…………………………………
Guy Parmelin
Federal Councillor, Head of the Federal
Department of Economic Affairs, Education
and Research6970