Free Trade Agreement (FTA):
The Commerce and Industry Ministry said that India is in dialogue with Israel for concluding a Free Trade Agreement (FTA).
- The announcement coincides with the 30th anniversary of the establishment of diplomatic ties between the two countries.
Free Trade Agreement (FTA):
- It is a pact between two or more nations to reduce barriers to imports and exports among them.
- Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.
- The concept of free trade is the opposite of trade protectionism or economic isolationism.
India and FTAs:
- After India opted out of the Regional Comprehensive Economic Partnership (RCEP) in November 2019, the 15-member FTA grouping that includes Japan, China and Australia, FTAs went into cold storage for India.
- But in May 2021 came the announcement that India-European Union talks, which had stalled in 2013, would be resumed.
- Both sides are now engaged in internal preparations to take these various strands of work forward.
- Bilateral free trade agreements of India are being negotiated with the United Arab Emirates, the United Kingdom, Australia and Canada.
- The agreement with the UAE was ‘close to finalisation’ while the FTA with Australia was at a ‘very advanced stage.’
