India and the European Union (EU) have signed a "Joint Feasibility Study" to pave way for a regional and bilateral free trade agreement even as officials acknowledge that a multilateral trade agreement is preferable.
Obviously, this seems to be a hedging strategy against continued failure of World Trade Organization negotiations. The two sides say that "This study will examine all aspects of the existing bilateral economic relationship between India and the EFTA and recommend measures to deepen economic engagement through an expansion of two-way trade and investment flows." As part of its charter, the group will discuss bilateral trade and investment agreement to cover trade in goods and services, investment, trade facilitation, technical standards, intellectual property rights, and dispute settlement and report back within a year.
The agreement is intended with the European Free Trade Association (EFTA) that includes Switzerland, Norway, Iceland, and Lichtenstein and is expected to be the foundation for an eventual "Comprehensive Economic Agreement." Federal Industry and Commerce Ministry says that the two blocks have several complementing skills that they can leverage for mutual good.
