India-EFTA pact opens new opportunities, says Iceland FM Bjarni Benediktsson

He highlighted the vast opportunities this partnership brings for all EFTA states and India, particularly in industries like fishing and energy.

Speaking to WION’s diplomatic correspondent Sidhant Sibal, he said, “At the end of the day, a free trade agreement is something that just opens the door. So now it’s up to the business partners to seize those opportunities and have good things come out of this.”

He also spoke on investment commitments under the pact, supply chain focus, and more.

Here’s the full interview:

WION: How important is the pact?

Bjarni Benediktsson: I think it is a historic day, finally, the long negotiating session has come to an end. This will open up markets on both sides. I think tremendous opportunities are being opened for all of the EFTA states but also for India. We’re excited because we are entering a market here which is one of the fastest growing in the world. And at the same time, trade relations have the potential to grow. And our case, in Iceland’s case, we look at the exporting opportunities for example, in the fishing industry, but for fish products but also in other industries. Partnerships in the area of geothermal and other energy sectors, or any other areas of the energy sector are something that is very exciting. At the end of the day, a free trade agreement is something that just opens the door. So now it’s up to the business partners to seize those opportunities and have good things come out of this.

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WION: How will it help in diversifying the supply chains at a time when there is a focus on that?

Bjarni Benediktsson: Well, I think the focus which is in this agreement, on foreign direct investment to spur new investment in India, must assist in the path of growth that India is on. As your minister mentioned earlier, it will help India be less reluctant on the imports.

WION: When it comes to investment targets, what are the targets, and how much investment will come from your country to India?

Bjarni Benediktsson: Well, proportionally our GDP is very small compared to others, especially Switzerland and Norway, but we do have examples of large investments abroad. So it is up to the business partners at the end of the day to make the necessary decisions, but I am hopeful that we will see direct investment from Iceland. It could happen in the area of energy it could also happen in other industries. We’ll just have to see.

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WION: What are the sectors which are going to benefit. Can you talk about that and the agriculture sector is kept out from the pact?

Bjarni Benediktsson: Yeah, well, that is very normal in free trade agreements that agriculture is the most delicate chapter to negotiate on. But I think we should focus on the positive side here, the number of tariffs that are being lowered, the opportunities that are being opened for foreign direct investment, and also the security that the Free Trade Agreement brings for business partners.

WION: What kind of security you’re talking about?

Bjarni Benediktsson: Just the fact that you have common understanding on the framework in which business takes place.

WION: Security situation in Europe, how is the conflict impacting it?

Bjarni Benediktsson: Well, if we are talking about the war, which is ongoing in Ukraine, it is of course, undermining economic security. And this has been very obvious in recent years when inflation came up and energy security was threatened. So we need to find the path to peace and freedom, and economic security will follow.