India and Israel on Thursday, Nov 20, inked terms of reference (ToR) to formally launch negotiations for a free trade agreement, Commerce and Industry Minister Piyush Goyal said. The ToR 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 told reporters here. Goyal, who is leading a 60-member business delegation to Israel, met leaders and businesses to discuss ways to boost bilateral trade and investments.
He said that services such as IT, tourism and movement of skilled professionals will get a boost from the proposed pact. Both countries will make a bridge for the movement of skilled professionals like doctors, engineers and nurses, he added.
The TOR was signed by Goyal and Israeli Economy and Industry Minister Nir Barkat.
Goyal said that the Israeli side has conveyed that they will not seek market access in sensitive areas such as dairy, rice, wheat and sugar. He also informed that Israel has come out with pre-qualification documents for a metro project. It is a USD 50 billion (Rs 4.5 lakh crore) worth project and Indian companies can participate in this, Goyal said, adding that at present, in over 20 cities, India has metro lines.
India and Israel had been negotiating a similar agreement since May 2010. Eight rounds were held, but talks stalled later. The last round was held in October 2021.
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