(a) intensify their exchange of information on these and similar mechanisms with a view to facilitating the acceptance of conformity assessment results;
(b) exchange information on conformity assessment procedures, including on the selection of appropriate conformity assessment procedures;
(c) exchange information on accreditation policy and promote the use of accreditation to facilitate acceptance of conformity assessment results and consider how to make best use of international standards for accreditation and international agreements involving the Partiesâ accreditation bodies, for example, through the International Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA), or the International Accreditation Forumâs (IAF) Multilateral Arrangement (MLA);
(d) if the Parties accept results of conformity assessment procedures conducted in another Party's territory, it shall be on terms no less favourable than conformity assessment procedures conducted in its own territory; and
(e) encourage accreditation bodies and conformity assessment bodies, to participate in cooperative voluntary arrangements, as a basis for acceptance of conformity assessment results.
Article 5.8. Joint Cooperation on Technical Regulations, Standards and Conformity Assessment Procedures
1. For the purpose of applying Article 5.1.2 of the WTO TBT Agreement, where a Party requires positive assurance of conformity with its applicable technical regulations for accepting a product on its market, the Party shall ensure that the required level of assurance of conformity takes into account the risk that non-compliance would entail with regard to the legitimate objective pursued.
2. A Party may, in order to fulfil a legitimate objective, decide to introduce pre- registration, registration, authorisation or mandatory third-party conformity assessment to allow access of a product to its market. Before introducing such measures, it shall notify such draft measure in accordance with Article 2.9.2 of the WTO TBT Agreement. Upon request of another Party, it shall provide the reasons with explanation for such proposed change.
3. For sectors where mandatory third-party assurance of conformity or pre-registration, registration or authorisation is required, the Parties agree to encourage their conformity assessment bodies to join any existing arrangements for international harmonisation of technical regulations and mutual recognition of conformity assessment results at multilateral level, or to cooperate towards the creation of new ones as appropriate.
Article 5.9. Market Surveillance
The Parties undertake, inter alia, to:
(a) exchange views on market surveillance and enforcement mechanisms and related activities; and
(b) ensure that there are no conflicts of interest between the market surveillance bodies and the manufacturers or producers subject to control or supervision.
Article 5.10. Conformity Assessment Fees and Processing Periods
With regard to the processing times and fees charged for assessing the conformity of products, the Parties reaffirm their obligations under Article 5.2 of the WTO TBT Agreement.
Article 5.11. Marking and Labelling
The Parties agree that where their technical regulations contain mandatory marking or labelling requirements, each Party will observe the principles of Article 2.2 of the WTO TBT Agreement and:
(a) each Party shall endeavour to minimise labelling and marking requirements to those which are relevant to consumers or users of the products or to indicate the products conformity with mandatory technical requirements;
(b) each Party may specify the content of labels and markings, but shall not require prior approval, registration, or certification of the labels or markings of products as a precondition for placing on their respective markets, for sale or free of charge, products that otherwise comply with its mandatory technical requirements, unless it is not more trade restrictive than necessary to fulfil legitimate objectives;
(c) if that Party mandates the use of a unique identification number by economic operators, it shall issue such a number to the other Parties' economic operators without undue delay;
(d) if that Party requires the information on the labels to be in a specified language, it shall also accept other languages in addition to the mandatory language, unless the information would be misleading, contradictory or confusing in relation to the information that the importing Party requires with respect to the goods; and
(e) each Party shall, except in cases where they consider that legitimate objectives under the WTO TBT Agreement would be compromised thereby, endeavour to accept non-permanent or detachable labels or labelling in the accompanying documentation rather than physically attached to the product.
Article 5.12. Transparency
1. The Parties recognise the importance of the provisions relating to transparency in the WTO TBT Agreement. To this end, the Parties shall take into account relevant Decisions and Recommendations adopted by WTO Committee on Technical Barriers to Trade since 01 January 1995 (G/TBT/1/Rev.15) as may be revised.
2. Upon written request of a Party, the requested Party shall provide the full text or summary of its notified technical regulations and conformity assessment procedures in English within 30 days from receipt of the request. The content of the summary shall be determined by the responding Party.
3. Each Party shall, upon written request of another Party, provide information regarding the objectives of, and rationale for, a technical regulation or conformity assessment procedure that Party has adopted or is proposing to adopt.
4. Each Party shall take the comments of another Party into account and shall, upon request of that other Party, endeavour to provide responses to these comments.
5. If a Party detains at the point of entry an imported consignment, due to non-compliance with a technical regulation or a conformity assessment procedure, it shall notify the importer or its representative, as soon as possible, the reasons for the detention.
6. Unless otherwise provided for in this Chapter, any information or explanation requested by a Party pursuant to this Chapter shall be provided by the requested Party, in print or electronically, within a reasonable period of time agreed between the requesting and requested Parties and, if possible, within 60 days. Upon request of the requesting Party, the requested Party shall provide such information in English.
Article 5.13. Contact Points
1. Each Party shall designate a contact point responsible for coordinating the implementation of this Chapter.
2. Each Party shall provide the other Parties with the contact details of its contact point and shall promptly notify the other Parties of any change in those.
Article 5.14. Sub-Committee on Technical Barriers to Trade
1. A Sub-Committee on Technical Barriers to Trade (hereinafter referred to as the "Sub-Committee on TBT") is hereby established under the Joint Committee, consisting of representatives of the Parties.
2. The Sub-Committee on TBT shall consider any matter arising under this Chapter, including:
(a) monitoring, reviewing and enhancing the implementation of this Chapter, including its annexes, if any;
(b) encouraging discussions, cooperation and exchange of information between competent authorities on matters related to this Chapter;
(c) discussing means of improving access to the Partiesâ respective markets;
(d) considering additions and amendments to the list of sectors or product areas under annexes to this Chapter, if any;
(e) facilitating sectoral cooperation among governmental and non- governmental conformity assessment bodies and laboratories in the Partiesâ territories;
(f) the preparation of recommendations and report to the Joint Committee as necessary; and
(g) any other matter referred to it by the Joint Committee.
3. The Sub-Committee on TBT shall act by consensus.
4. Unless otherwise agreed by the Parties, the Sub-Committee on TBT shall normally meet every two years. Such meetings may be conducted in any agreed manner on a case-by-case basis. The meetings of the Sub-Committee on TBT shall be chaired jointly by an EFTA State and India.
Article 5.15. Exchange of Information and Consultations
1. A Party shall give prompt and positive consideration to any request from another Party for information, clarification and consultations on issues relating to the implementation of this Chapter. The Sub-Committee on TBT may discuss and decide on timeframes and other modalities on information, clarification and consultations.
2. A Party may request consultations with another Party if that other Party has taken a measure which is likely to create or has created an obstacle to trade between the Parties. Such consultations shall be initiated as soon as possible and may be conducted by the competent authorities of the Parties concerned in a mutually agreed manner. The outcome of the consultations shall be reported to the Sub-Committee on TBT.
3. The Parties agree to enhance their communication and exchange of information on issues within the scope of this Chapter, in particular on ways to facilitate compliance with their technical regulations, standards and conformity assessment procedures and to eliminate unnecessary obstacles to trade in goods between them.
Article 5.16. Review Clause
Upon request of a Party, the Parties shall without undue delay negotiate an atrangement extending to each other equivalent treatment related to technical regulations, standards and conformity assessment procedures which all Parties have agreed with a non-Party.
Chapter 6. TRADE IN SERVICES
Article 6.1. Scope and Coverage
This Chapter shall apply to measures by the Parties affecting trade in services.
Article 6.2. Incorporation of Provisions from the GATS
1. With regard to the rights and obligations of the Parties under this Chapter, the provisions of the GATS and its annexes, including the definitions set out therein, are hereby incorporated into and made part of this Chapter, mutatis mutandis, except as provided under this Chapter. (3)
2. Chapter 13 shall substitute Part V of the GATS. Article 6.3 shall apply with regard to the Parties’ most-favoured nation obligations under this Chapter. (4) Article 6.5 shall substitute paragraph (m) of Article XXVIII of the GATS.
3. Schedules of specific commitments and lists of most-favoured-nation exemptions under the GATS are substituted by the Partiesâ Schedules of Specific Commitments and Lists of MFN Exemptions which are set out respectively in Annexes 6.F and 6.G, and form an integral part of this Chapter. The terms "schedule" and "specific commitments" contained in GATS provisions shall be understood as referring to the Schedules of Specific Commitments annexed to this Chapter and to the specific commitments inscribed therein, respectively.
4. For the purposes of this Chapter "Member" contained in provisions of the GATS that are incorporated into and made part of this Chapter means "Party". However, under Article XII:2(a) of the GATS "Members" means "Members of the WTO".
5. The provisions incorporated from the GATS and its annexes are complemented by the provisions of the following Annexes, which form an integral part of this Chapter:
(a) Annex 6.A (Financial Services);
(b) Annex 6.B (Telecommunications Services);
(c) Annex 6.C (Movement of Natural Persons Supplying Services);
(d) Annex 6.D (Recognition of Qualifications of Service Suppliers); and
(e) Annex 6.E (Maritime Personnel).
Article 6.3. Most-Favoured Nation Treatment (5)
1. Without prejudice to measures taken in accordance with Article VII and Article IL.3 of the GATS, and except as provided for in its list of most-favoured- nation exemptions contained in Annex 6.G, each Party shall accord immediately and unconditionally in respect of all measures affecting the supply of services, to services and service suppliers of another Party, treatment no less favourable than the treatment it accords to like services and services suppliers of any non- Party.
2. Treatment granted under other existing or future agreements concluded by a Party and notified under Article V or Article Vbis of the GATS shall not be subject to paragraph 1.
3. If a Party concludes or amends an agreement of the type referred to in paragraph 2, it shall, upon request of another Party give consideration for negotiating the incorporation into this Agreement of a treatment no less favourable than that provided under the former agreement. Such incorporation, if agreed, should maintain the mutual balance of commitments undertaken by each Party under this Agreement.
Article 6.4. Schedules of Specific Commitments
1. The specific commitments each Party undertakes in line with Part III of the GATS are set out in Annex 6.F.
2. With respect to sectors where such commitments are undertaken, each schedule shall specifies:
(a) terms, limitations, and conditions on market access;
(b) conditions and qualifications on national treatment;
(c) undertakings relating to additional commitments referred to in Article XVIII of the GATS;
(d) where appropriate, the time-frame for implementation of such commitments; and
(e) the date of entry into force of such commitments.
3. Article XX:2 of the GATS shall apply to measures inconsistent with both Articles XVI and XVII of the GATS.
Article 6.5. Natural Persons of a Party
For the purposes of this Chapter, "natural person of another Party" means a natural person who resides in the territory of that other Party or any other Party and who, under the domestic law of that other Party, is:
(a) a national or citizen of that other Party; or
(b) a permanent resident of that other Party provided that the Party accords substantially the same treatment to its permanent residents as it does to its nationals in respect of measures affecting trade in services, provided further that no Party is obligated to accord to such permanent residents treatment more favourable than would be accorded by that other Party to such permanent residents.
Article 6.6. Payments and Transfers
1. Except under the circumstances envisaged in Article XII of the GATS, no Party shall apply restrictions on international transfers and payments for current transactions relating to its specific commitments.
2. Nothing in this Chapter shall affect the rights and obligations of the Parties under the Articles of Agreement of the International Monetary Fund adopted at Bretton Woods on 22 July 1944 (hereinafter referred to as "IMF Articles of Agreement"), including the use of exchange actions which are in conformity with the IMF Articles of Agreement, provided that no Party shall impose restrictions on capital transactions inconsistently with its specific commitments regarding such transactions, except under Article XII of the GATS or at the request of the International Monetary Fund.
Article 6.7. Denial of Benefits
In addition to Article XXVII of the GATS, a Party may, subject to prior notification and consultation, deny the benefits of this Chapter to the supply of a service from or in the territory of another Party, if the Party establishes that the service is supplied by a service supplier that is owned or controlled by a person of a non-Party and the denying Party adopts or maintains measures with respect to the non-Party that prohibit transactions with the service supplier or that would be violated or circumvented, if the benefits of this Chapter were accorded to the service supplier.
Chapter 7. INVESTMENT PROMOTION AND COOPERATION
Article 7.1. Objectives
1. The Parties recognise the importance of promoting and facilitating foreign direct investment as a means for fostering economic growth, innovation and green transition.
2. The Parties acknowledge the role of skilled workforce development to advance job opportunities, including through cooperation in basic, higher and technical-vocational education and skill training, capacity building and exchange programs.
3. The Parties share the objectives that:
(a) the EFTA States shall aim to increase foreign direct investment from investors of the EFTA States into India by 50 billion (US dollars) within 10 years from the entry into force of this Agreement and an additional 50 billion (US dollars) in the succeeding 5 years (6) (7); and
(b) the EFTA States shall aim to facilitate the generation of 1 million jobs (8) within 15 years in India from the entry into force of this Agreement, resulting from inflows of foreign direct investment from investors of the EFTA States into India.
Article 7.2. Investment Promotion
1. To achieve the shared objectives in paragraph 3 of Article 7.1, the EFTA States shall promote foreign direct investments (9) from investors of the EFTA States into India and generation of jobs in India as a result of such investments.
2. In view of promotion activities for investments into India, India shall endeavour to ensure a favourable climate for foreign direct investment, while taking into account the need to identify, assess and mitigate potential risks for security or public order.
Article 7.3. Cooperation Activities
1. The Parties shall cooperate in areas of mutual interest with a view to benefitting from the complementarities of their economies and the opportunities created under this Agreement in terms of the envisaged job creation in accordance with Article 7.1.
2. Areas of cooperation may include:
(a) appropriate means of identifying investment opportunities and information channels on investment regulations, with the aim of facilitating foreign direct investment;
(b) elaboration of strategies and programs to identify key obstacles to and opportunities for investment in the Parties, with a focus on high value- added sectors with linkages to regional and global value chains and potential measures to remove obstacles;
(c) furthering of an environment conducive to increased investment flows; and technology collaboration (10),
(d) development of mechanisms for joint investments and ventures between enterprises including micro, small and medium sized enterprises;
(e) development and execution of public-private strategies for the identification of investment opportunities in, and matchmaking of investors between, the Parties;
(f) facilitation of continued skill development, vocational and professional education, and training;
(g) encouragement of technical cooperation and facilitation of technological collaboration in sectors of mutual interest for the development and enhancement of infrastructure and industrial capabilities; and
(h) facilitation of partnerships among centres of excellence, government agencies and expert institutes in fields of mutual interest. Such fields may include earth science, telemedicine, STEM, healthcare, biotechnology, digital technology, renewable energy, clean technology and sustainable metal making.
3. The Parties may cooperate pursuant to paragraph 2 through activities such as:
(a) regular economic and scientific missions with high-ranking delegations;
(b) annual high-level meetings between individual EFTA States and India with the participation of the private sector;
(c) regular investment promotion events, such as, at the World Economic Forum with participation of the private sector;
(d) sector-specific business roundtables;
(e) roadshows in India and in the different EFTA States;
(f) thematic expert exchanges;
(g) support for Invest India in setting up representations in some EFTA States;
(h) exchanges within the framework of existing town twinning programmes;
(i) support for vocational education and training projects; and
(j) other activities as mutually agreed by the Parties.
Article 7.4. Sub-Committee on Investment Promotion and Cooperation
1. The Parties hereby establish a Sub-Committee on Investment Promotion and Cooperation (hereinafter referred to as "Investment Sub-Committee"), consisting of government representatives of the Parties.
2. The mandate of the Investment Sub-Committee is set out in Annex 7.A (Mandate of the Sub-Committee on Investment Promotion and Cooperation).
Article 7.5. Contact Points
1. Upon entry into force of this Agreement:
(a) each Party shall designate a contact point responsible for facilitating communication between the Parties regarding the implementation of this Chapter; and
(b) India shall establish a dedicated EFTA-Desk to assist investors from the EFTA States seeking to invest, investing or having invested, in particular with any problems that may arise.
2. Each Party shall provide the other Parties with the contact details of its contact point and shall promptly notify the other Parties of any change in contact point designated in paragraph 1.
Article 7.6. Dispute Settlement
No Party shall have recourse to dispute settlement under Chapter 12 (Dispute Settlement) for any matter arising under this Chapter.
Article 7.7. Review, Reporting and Three-tier Government-to-Government Consultations
1. The Parties agree to a three-tier Government-to-Government consultations procedure for resolution of differences raised in relation to the obligations in paragraph 1 of Article 7.2.
2. The Investment Sub-Committee shall review progress towards the achievement of the shared objectives under paragraph 3 of Article 7.1.
3. The first review by the Investment Sub-Committee shall be held no later than 5 years after entry into force of this Agreement. The second review by the Investment Sub-Committee shall be held no later than 10 years after entry into force of this Agreement. The final review by the Investment Sub-Committee shall take place 15 years after entry into force of this Agreement. The Parties may mutually agree on a different timeline or additional reviews.
4. The Investment Sub-Committee shall prepare a report for each of the reviews. If the Investment Sub-Committee finds that the progress towards achievement of the shared objectives in paragraph 3 of Article 7.1 has been insufficient, it shall record the occurrence of any unforeseen events and other factors which have had a material bearing on the progress.
5. In case of occurrence of any unforeseen circumstances like global pandemic, war, geopolitical disruptions, financial crisis or sustained economic underperformance, which have had a material bearing on the progress to achieve the shared objectives, the Parties shall adjust the shared objectives accordingly through an amendment of paragraph 3 of Article 7.1.
6. Should the shared objectives under paragraph 3 of Article 7.1 not be reached by the final review, and India considers that the EFTA States have not fulfilled the obligations to promote investments from investors of the EFTA States into India as set out in paragraph 1 of Article 7.2, India may request consultations. The Investment Sub-Committee shall be convened within 30 days of receipt of India's written request for such consultations.
7. The scope of the consultations shall be limited to determining whether the EFTA States have fulfilled their obligations under paragraph 1 of Article 7.2 related to the shared objectives under paragraph 3 of Article 7.1, and where applicable, to finding a mutually satisfactory solution between the Parties.
8. The Investment Sub-Committee shall endeavour to settle issues within 60 days from convening of the Investment Sub-Committee with due consideration to the final report. This period may be extended by no more than 1 year upon request of a Party.
9. If the Investment Sub-Committee determines that the obligations in paragraph 1 of Article 7.2 have not been fulfilled, the Investment Sub-Committee shall make recommendations to the Joint Committee.
10. If after the 1 year period from the request of consultations by India, the matter remains unresolved, then the Investment Sub-Committee shall refer the matter to the Joint Committee for consultation, with its recommendations.
11. The Joint Committee shall begin consultation upon the receipt of the referral from the Investment Sub-Committee under paragraph 10, with a view to reaching a mutually satisfactory solution. If the Joint Committee cannot resolve the matter within 6 months, the same shall be referred to the representatives of the EFTA States and India at the level of Ministers. Such representatives shall be identified in writing.
12. Such representatives of the EFTA States and India shall begin consultations no later than 30 days from the receipt of the referral from the Joint Committee. The representatives of the Parties shall take no more than 6 months from the of receipt of the referral from the Joint Committee, to arrive at a mutually satisfactory solution to the matter raised by the requesting Party. If the matter is not resolved within 6 months, a grace period of an additional 3 years shall, upon request of a Party, be observed. The request shall state the grounds and may outline possible actions from the EFTA States towards the achievement of the shared objectives under paragraph 3 of Article 7.1.
13. Nothing in this Chapter shall require the Parties to disclose any information that they consider confidential. The Parties shall treat as confidential any information designated as such by the Party providing the information.