Championed by GJEPC, this contract represents a key step toward growing exports to the unexplored markets of EFTA nations, particularly Switzerland.
India’s recent Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) is set to transform the gem and jewellery (G&J) sector, particularly by increasing exports to EFTA countries, most notably Switzerland. With EFTA countries scrapping customs charges on chapter 71 products (gems and jewellery), Indian exporters now have duty-free access to Switzerland, Iceland, Norway, and Liechtenstein.
Vipul Shah, Chairman of GJEPC, praised the Government of India’s collaborative efforts, particularly Minister of Commerce and Industry Shri Piyush Goyal, in implementing GJEPC recommendations into the TEPA. Shah expects the $100 billion bilateral trade agreement to create huge prospects for Indian G&J producers, with exports to the EFTA region increasing from $335 million to at least $1 billion. Shah emphasized the possibilities for fine gold jewelry, silver jewelry with high gloss and matte finishes, and opulent diamond and colored gemstone jewelry.
GJEPC played a critical role in the discussions, working closely with the Ministry of Commerce and Industry to ensure the industry’s best interests were represented. With EFTA’s overall imports of finished Gem & Jewellery items totaling US$12.3 billion, India’s current share of $335 million (2.7% of EFTA total imports) highlights the enormous potential for growth in unexplored EFTA markets.
Key concessions for EFTA countries in the gem and jewellery sector include the gradual abolition of duties on products such as natural/cultured pearls, rough diamonds, and precious and semiprecious colored gemstones, among others. Furthermore, customs duty reductions on certain commodities over time, as well as a considerable drop in tax on precious metal gold imports from EFTA nations, represent significant steps toward improving trade relations and unleashing export potential for India’s G&J sector.