Q1. Consider the following statements regarding the European Free Trade Association (EFTA) and India–EFTA relations:
- EFTA is a regional organisation distinct from the European Union.
- All EFTA members are members of the European Union.
- India’s Trade and Economic Partnership Agreement with EFTA covers areas extending beyond conventional tariff concessions, including trade, investment and economic cooperation.
- Switzerland, despite being an EFTA member, is not a member of the European Union.
Which of the statements given above are correct?
(a) 1 and 4 only
(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Answer:
Explanation:
- Statement 1 is correct: EFTA is a separate intergovernmental organisation from the EU.
- Statement 2 is incorrect: EFTA has four members—Iceland, Liechtenstein, Norway and Switzerland—none of which is an EU member.
- Statement 3 is correct: The India–EFTA TEPA represents a broader economic partnership rather than merely a tariff-reduction arrangement.
- Statement 4 is correct: Switzerland is an EFTA member but not an EU member.