As part of the comprehensive economic cooperation treaty between India and Israel, a joint working group has agreed to a preferential trade agreement between the two nations.
The group has also recommended the establishment of direct banking links and liberalisation of trade in services sector.
The group has recommended that the agreement will start with a select list of items, which will not attract duties in both Israel and India. Trade clearance procedures, including customs clearance, are also likely to be revised to ensure a smooth flow of trade.
Working towards greater cooperation between the quality certification authorities of the two countries is also on the cards. The possibility of joint industrial research and development is also being looked into.
Infrastructure, including direct air and sea links, will be improved to allow for more frequent and cost-effective transportation for trade purposes.
Financial institutions from both the countries are also negotiating a financial protocol, which will provide a secure framework for business of Israeli firms in India. The working group has also emphasised the need for mutual recognition agreements or conformity assessment agreements for goods.
These agreements seek to reduce transaction costs through avoiding duplication of testing certification in trade. In the first stage, products of interest to each side will be identified based on the import control regime prevalent in the two countries and based on that, organisations involved in export or import controls will be identified.
