Exclusive: Norway grants 98% of Indian exports zero customs duties under TEPA

Norway's Minister of Trade and Industry Jan Christian Vestre has underscored the transformative impact of the Trade and Economic Partnership Agreement (TEPA) signed between India and the European Free Trade Association (EFTA). In an exclusive interview with our diplomatic correspondent SidhantSibal, Vestre stated, "98% of the Indian exports into Norway will have zero customs duties and tariffs." He elaborated that this measure "will make Indian products and services more competitive on the Norwegian market."

Emphasising the broader significance of the agreement, Vestre remarked, "This agreement is about so much more than only reducing the tariffs. It's more about really seizing opportunities together and make sure that we can create sustainable growth together." The TEPA, inked in Delhi among India and EFTA nations Iceland, Liechtenstein, Norway, and Switzerland, also includes provisions to bolster investments.

Vestre affirmed the investment commitments, stating, "We are committed to promote business opportunities to mobilise private investments by creating the ecosystem, the predictable framework conditions needed and of course also the foundation so that companies really can invest and grow and create the new jobs."

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Here is the full interview:

WION: How big is this milestone?

Jan Christian Vestre: I would say,Aj ka din atehasik hai(today is a historic day).This is a day for the history books. It's really a breakthrough. It will create more trade, more investments, more jobs, beneficial for both India and for the countries including Norway. So, I'm very happy today and extremely optimistic about the future.

WION: If you can talk about the details, one of the key focuses has been the investment announcement of 100 billion dollars in 15 years. These are commitments. How will these commitments get fulfilled?

Jan Christian Vestre: We are committed to promotingbusiness opportunities to mobilise private investments by creating the ecosystem, the predictable framework conditions needed and of course also the foundation so that companies really can invest and grow and create new jobs.

And, I think that trade agreement is really a breakthrough because now we will reduce and eliminate almost all the tariffs. We will set up an office together and rally a joint effort to promote the business opportunities to get rid of the obstacles, the challenges, to deal with them as they come along tomake it easier for the companies to use the opportunities here. We have also agreed to work together on some big global challenges such as climate reductions, CO2 reductions, how to speed up the green transition, how to get more investments into renewable energy, and so on and so on. So, it's really an important framework.

WION: Trade pactsare all about reducing customs duties, making sure market access is given, if you can talk about that...

Jan Christian Vestre: Talking on Norway's behalf we already did reduce the customs duties and tariffs on many Indian products and services already. From now on, 98 per centof the Indian exports into Norway will have zero customs duties and tariffs, thus making Indian products and services more competitive on the Norwegian market.

We did give better market access for some agricultural products, some fruit, some vegetables, flowers, and some other important issues for Indian exporters. And we have got the same back from India. But this agreement is about so much more than only reducing the tariffs. It's more about really seizing opportunities together and making sure that we can create sustainable growth together.

WION: How will the trade pact help indiversification?

Jan Christian Vestre: It will really help in diversifying our economies, but it will also help to green our economies, to really speed up the green transition in terms of renewable energy, hydrogen batteries, carbon capture and storage, solar energy and so on.

When we talk about some of those value chains, we are really dependent on other countries and I think like minded countries like India and Europe, it's important that we you know, really stay strong together and make stronger ties together, making sure that we do control those value chains and that they will be equal beneficial for all of us and that's what we have reached with this agreement.

WION: Are we looking at the services sector also under this trade pact?

Jan Christian Vestre: Yes, on services. I mean, in Norway, wealready have the privilege of welcoming 20,000 highly skilled Indians to Norway. A lot of Norwegian companies wouldn't have reached this far if it was not for the expertise and the competence, and the knowledge represented by the Indian people. And that's also something we encourage, and we invite, of course, skilled workers also to come to Norway, simply because some of the really big challenges the world is facing today is something that we have to team up together on solving. And that's why India and Norway are stronger together.