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India-EFTA Deal [3/3]

🔺Data Exclusivity:

✓One of the key concerns is the proposal to introduce an additional IP barrier—data exclusivity (DE)—which could potentially delay the manufacturing of generic versions of new medicines, biologics, and preventive HIV therapy for a defined period, even when there is no patent on the medicine.

✓The proposed data exclusivity provisions, insisted upon by EFTA nations, would prevent domestic generic drug manufacturers from utilizing data from preclinical tests and clinical trials conducted by the original patent holders.

🔺The Difference in Income Level:

✓There is a huge difference in per capita incomes between India (USD 2,500) and the EFTA countries (USD 60,000-70,000).

✓So an FTA must consider ways and means to provide equal opportunity for the latter to catch up.

🔺Non-Tariff Barriers (NTBs):

✓Streamlining non-tariff barriers like differing product standards and technical regulations is crucial. Inconsistencies can create hurdles for businesses trying to export goods, as they may need to modify products to comply with regulations in each market.

🔺Domestic Resistance:

✓Some Indian sectors, particularly those facing competition from EFTA imports, might express concerns about job losses or unfair competition.

❗What Should be The Way Forward to Ensure the Success of The India-EFTA Deal?

🔹Addressing Asymmetries by Finding Common Ground :

🔅Investment Protection:

✓The deal should include provisions for the protection of investments, ensuring a conducive environment for businesses to invest and operate in each other's markets.

🔅Phased Reductions:

✓For sensitive sectors like agriculture, India could consider phased tariff reductions, allowing domestic producers time to adjust and become more competitive.

🔅Compensation Packages:

✓Tailored compensation packages for affected industries can ease concerns and provide support for necessary restructuring.

🔅Dispute Resolution Mechanism:

✓Establishing an effective dispute resolution mechanism is crucial to address any trade-related disputes that may arise and prevent escalation into trade conflicts.
Bridging the Regulatory Gap Through

🔹Streamlining for Efficiency :

🔅Reduce Non-Tariff Barriers:

✓Efforts should be made to reduce non-tariff barriers such as technical regulations, standards, and customs procedures that can hinder trade flows

🔅Mutual Recognition Agreements (MRAs):

✓Establishing MRAs for specific product categories can ensure products that meet one country's standards are automatically accepted by the other.

🔅Joint Technical Committees:

✓Forming joint committees dedicated to harmonizing technical regulations can expedite the process and promote consistency.

🔹Building Capacity By Providing Tools for Growth:

🔅Training and Skill Development:

✓Investing in training programs for customs officials and businesses on the new trade regime will ensure smooth implementation.

🔅Infrastructure Upgrade:

✓Upgrading customs infrastructure and logistics networks can handle the anticipated increase in trade volume efficiently.

🔹Fostering Collaboration With A Shared Vision:

🔅Regular Stakeholder Dialogues:

✓Maintaining regular dialogues between governments, businesses, and civil society can address concerns and ensure transparency.

🔅Knowledge Sharing Programs:

✓Encouraging knowledge exchange in areas like best practices and technological advancements can benefit both regions.

⁉️Conclusion

✓The deal presents a unique opportunity to forge a stronger, more integrated partnership that benefits both sides and sets a positive precedent for future trade agreements.

✓As India and EFTA countries embark on this exciting journey, the focus should remain on collaborative efforts, open communication, and a shared vision for a thriving economic partnership.

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