1️⃣ Negotiation & Finalization (Already Completed)
✅ Bilateral Negotiations → Switzerland (via SECO) and India negotiated the terms of TEPA, covering tariff reductions, market access, investment rules, and dispute resolution mechanisms. ✅ Agreement Finalization → The final legal text of the agreement was reviewed and adjusted to ensure compliance with Swiss trade policies and WTO commitments. 📍 Current Status: TEPA negotiations have been concluded, and the text is awaiting approval by Swiss institutions.
2️⃣ Federal Council Approval
🔹 The Swiss Federal Council (Bundesrat) formally reviews TEPA to ensure it aligns with Swiss economic interests and international trade commitments. 🔹 The Council then submits the agreement to Parliament, accompanied by an explanatory report detailing economic benefits, legal considerations, and geopolitical implications. 📍 Estimated Timeline: Typically within 1-3 months after the agreement is finalized.
India Opens EFTA Desk to Boost Swiss Investments
🇮🇳 On February 10, 2025, India launched an EFTA Desk in Delhi to support investments from EFTA countries, including Switzerland 🇨🇭. 🏢 The desk helps companies navigate regulations and enter the Indian market before the free trade deal takes effect. 📜 The India-EFTA Free Trade Agreement, signed in March 2024, includes $100 billion in investments 💰 and one million new jobs 👷♂️ in India. ⚖️ Switzerland’s ratification may be delayed due to potential referendums, prompting safeguards on sustainability 🌱 and labor rights 🚫🧒🏽. 📈 Over 30 Swiss companies are part of the EFTA delegation, showing strong business interest despite India’s challenging market conditions.
Next Steps for Swiss Businesses
✔ Monitor Parliamentary Debates → Swiss businesses should track TEPA discussions in Bundesrat, Nationalrat, and Ständerat. ✔ Engage with Industry Groups → Companies should collaborate with Swiss trade associations, export councils, and business chambers to advocate for TEPA. ✔ Prepare for Implementation → Businesses should start planning market entry strategies, supply chain adjustments, and investment expansions in India.
3️⃣ Swiss Parliament Approval (Two Chambers)
Step 1: Approval by the National Council (Nationalrat) 🔹 The agreement is first debated in the National Council, which analyzes TEPA’s impact on Swiss businesses, consumers, and regulatory frameworks. 🔹 The National Council votes on whether to approve, reject, or request modifications. Step 2: Approval by the Council of States (Ständerat) 🔹 If the National Council approves TEPA, the agreement moves to the Council of States, which represents Switzerland’s cantonal interests. 🔹 This chamber ensures that TEPA does not negatively impact specific Swiss industries (e.g., agriculture, pharma, watchmaking). 🔹 If both chambers approve TEPA without changes, it proceeds to the next step. If modifications are suggested, the agreement may require further deliberations between the two chambers. 📍 Estimated Timeline: 3-6 months, depending on political debates and opposition from certain industries or political parties.
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4️⃣ Optional Referendum (People’s Vote)
Switzerland has a direct democracy system, meaning TEPA could be challenged by a referendum if: 🔹 50,000 Swiss citizens sign a petition within 100 days of Parliamentary approval. 🔹 A major political party or industry association (e.g., farmers, unions) pushes for a national vote. If a referendum is triggered, a nationwide vote is held, where Swiss citizens decide whether to accept or reject TEPA. If rejected, the agreement does not go into effect. 📍 Estimated Timeline (if a referendum occurs): Additional 6-12 months for campaigning, voting, and legal reviews.
5️⃣ Ratification & Implementation
If TEPA is approved by Parliament and not challenged by a referendum, Switzerland officially ratifies the agreement. 🔹 The Swiss government notifies India that all internal procedures are completed. 🔹 TEPA enters into force on the agreed-upon start date, allowing Swiss businesses to benefit from reduced tariffs, investment protections, and enhanced trade access. 📍 Estimated Timeline: 1-2 months after the final approval.