Trade deal between India, European Free Trade Association likely within a few days, says Norwegian Minister

India-EFTA Free Trade Agreement nears conclusion, addressing concerns over drug patents, global issues, and economic collaboration, says Norway's Deputy Foreign Minister.

The Free Trade Agreement between India and the European Free Trade Association (EFTA) is in the final stages and is expected to be concluded within the next few days, Norway’s Deputy Foreign Minister Andreas Motzfeldt Kravik said on Thursday, February 22,2024.

“We’re hopeful that we can conclude this now in the forthcoming few days. We will see how it goes. Of course, everything is still under discussion and we have to see how things play out. But we’re very optimistic. We have been at this now for several years and we’ve had very intense discussions. The respective Ministers from both sides, in terms of trade and trade policies, have been personally involved. I met with Mr. Piyush Goyal and discussed this. Again, we are very optimistic,” Mr. Kravik told The Hindu on the sidelines of the ongoing Raisina Dialogue. The EFTA consists of Iceland, Liechtenstein, Norway, and Switzerland.

The 21st round of negotiations for the trade deal were held in New Delhi from January 8 to 13. However, a possible matter of concern for India, on which there is no clarity, is the clause in the draft agreement that could delay access to affordable, generic versions of patented drugs in India by a minimum of six years, as reported by The Hindu last week.

According to a leaked draft, within six months of the trade agreement being signed, signatories should include a “specific duration” during which pharmaceutical companies applying to their country’s regulators for permission to sell a drug would not rely on “undisclosed test data” — in this case, data on the drug’s efficacy and impact on people — to gain market approval for at least six years.

During his visit, Mr. Kravik said he had held discussions on global issues, such as the situations in Gaza, Ukraine and the Red Sea, as well as on Norway’s bilateral relationship with India. Advocating greater economic collaboration between the two countries, he said, “India is now a leader in the global South and also an ascending power, a potential forthcoming superpower, and a culture that we want to collaborate more with.”

Responding to a question on the situation in the Red Sea, where the Houthis continue to target commercial shipping, Mr. Kravik said that as sea faring nations India and Norway were very much aligned on this issue. The fact is that there is a non-state stakeholder attacking civilian vessels in the Red Sea, inhibiting commercial maritime traffic which is something that cannot be accepted or tolerated, Mr. Kravik noted.

“I spoke to your Foreign Minister about this, and he mentioned he had recently been to Iran to lay down a few markers, saying that this is not something that can stand and that Iran needs... what it can do to prevent this. And I was also recently in Iran. I had the same message, also been clear directly towards the Houthis that this is not something that is acceptable, both from a standpoint of international law, from a standpoint of commercial international traffic, and not something that is tolerable from an international legal perspective,” he said, expressing hope that durable solutions can be found so that the Red Sea route can be opened again.