&imwidth=800&imheight=600&format=webp&quality=medium "India and Israel ink terms of reference for free trade agreement negotiations")
India and Israel signed the terms of reference (ToR) on Thursday to formally launch negotiations for a free trade agreement (FTA), Commerce and Industry Minister Piyush Goyal said. The signing of the ToR is a boost for India’s trade outreach and the India-Israel bilateral relationship. The terms of reference include market access for goods by eliminating tariff and non-tariff barriers, investment facilitation, simplification of customs procedures, increasing cooperation for innovation and technology transfer, and easing norms to promote trade in services. “We have signed the ToRs today. Now we will soon finalise the dates for starting the negotiations for that,” Goyal, who is leading a 60-member business delegation to Israel, told reporters. He will meet leaders and businesses to discuss ways to boost bilateral trade and investments.
Goyal said the proposed trade agreement will cover market access and liberalisation of trade, progressively eliminate tariff barriers, and reduce non-tariff barriers by fast-tracking approvals and market access.
The subsequent discussions will include issues like investment, simplification of customs procedures, technology transfer, defence, space, fintech, agritech, AI, cyber security, R&D, innovation, fintech, and drip irrigation.
Goyal added that the FTA will create a bridge for skilled and qualified professionals from India to work in Israel, and particularly the services sector will gain.
He added that 8 to 10 Indian companies have been shortlisted for work on a ₹4.5 lakh crore metro project in Tel Aviv, for which a pre-qualification interest has already been issued.
Goyal described the proposed India-Israel FTA as a powerful force multiplier in the bilateral relationship, marking it as a historic beginning between both countries with a rich history of resilience and growth amidst challenges.
India-Israel friendship was started by former Prime Minister AB Vajpayee and given wings by Prime Minister Narendra Modi. who became the first Indian PM to visit Israel in 2017, Goyal said, and termed the FTA negotiations as a “new journey of shared prosperity between trusted partners who complement each other.”
Highlighting the trade complementarities between the two countries, Goyal said that Israel doesn’t want any export opportunities in the dairy, agriculture, and fisheries sectors, which are sensitive for India.
