Norway and Iceland to access Indian market as free trade deal takes effect
But Scottish salmon exporters must wait another year for UK agreement to come into force
The free trade agreement between EFTA (European Free Trade Association) states and India has now come into force, removing tariffs on almost all Norwegian and Icelandic exports, including seafood.
The agreement, which was signed in New Delhi on March 10, 2024, opens up major market opportunities, said Norway’s Minister of Trade and Industry, Cecilie Myrseth.
“With this agreement, over 90% of Norwegian goods will receive duty-free access to India – the world's most populous country.
Open economy
“It is good for business and provides security for Norwegian jobs. Norway has a small and open economy that is dependent on exports, and industry benefits from increasingly better market access. At the same time, the agreement provides opportunities for the export of new products.”
The agreement with the four EFTA countries, which also include Switzerland and Liechtenstein, will gradually reduce India’s tariff level on salmon from 33% to zero within five years.
As of October 1, the agreement will mean zero tariffs for approximately 42% of Norwegian exports to India. Trade coverage will increase to approximately 85% after five years, and to approximately 92% ten years.
Scottish salmon
The UK struck a free trade agreement (FTA) with India in July this year, which will open up the market to Scottish salmon, but the agreement could take a year to be ratified.
Scottish salmon currently carries a 33% tariff in India, but sector body Salmon Scotland said the FTA presents a huge opportunity and farmers interested in exporting to India are now working on the details.
Norway’s FTA with India is one of several accords the country has signed recently, including deals with Thailand, Kosovo, Ukraine, Malaysia and MERCOSUR (Argentina, Brazil, Uruguay, Paraguay).
Growing market
The IMF estimates that India will be the world's third largest economy in 2030. India has more than 1.4 billion inhabitants, of which approximately 65% are under the age of 35, a large and growing market.
As part of the trade agreement's obligations, the EFTA states will work to increase investment from Norwegian businesses in India. India, in turn, will facilitate the establishment of Norwegian companies in India.
