India and European Free Trade Association, comprising Switzerland, Norway, Liechtenstein and Iceland, on Saturday, agreed to set up a joint task force for negotiating a broad-based trade and investment pact.

Union Commerce & Industry Minister Kamal Nath held talks in this regard with his counterparts here, and accepted the recommendations of a joint study group, set up in December 2006, to explore the feasibility of such an agreement.

The JSG submitted a report suggesting both sides would “significantly benefit from a bilateral broad-based trade and investment agreement”.

Mr Kamal Nath also announced the setting up of a joint task force (JTF) comprising officials from India and EFTA states to monitor the implementation of JSG’s recommendations.

Bilateral trade between India and EFTA in 2005-06 was $7.4 billion, comprising exports of $623.11 million and imports of $6,852.25 million.

Among the four EFTA members, India’s largest trading partner is Switzerland followed by Norway, Iceland and Liechtenstein. Incidentally, the EFTA was founded in 1960.