JERUSALEM: India and Israel are considering implementing their proposed free trade agreement (FTA) in two phases to ensure early benefits for the trade community of both countries, commerce and industry minister Piyush Goyal said on Sunday.
India and Israel on Thursday inked terms of reference (ToR) to formally launch negotiations for the agreement.
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 are considering doing this in two tranches. A decision will be taken when the talks begin. Both ministers are keen to finalise the first phase early so that the trade community benefits sooner,” Goyal said.
The minister is in Israel to meet leaders and businesses to discuss ways to boost bilateral trade and investments. He is leading a 60-member business delegation.
Goyal said that he and Israeli economy and industry minister Nir Barkat have agreed that they will first focus on low-hanging fruit in the free trade deal.
They have also decided not to touch the sensitive issues on both sides.
The two countries, he said, may look at “how innovative and R&D can drive greater investments in each other’s markets, work on joint projects where we can leverage on their skill sets and they can leverage on the economies of scale in a large market like India”.
“It is quite possible that we may come out with the first phase on an FTA, so that we can kickstart the benefits faster,” Goyal said.
On a big metro project in Israel, the minister said Israel has just come out with pre-qualification documents for $50 billion metro project in Tel Aviv.
It involves 300km of underground tunnelling and is one of the largest projects, and there are keen that Indian companies should also bid for it, he said.
By PTI
