India, Israel sign MoU in textile sector

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SME Times News Bureau | 07 Sep, 2012
India and Israel have signed a Mamorendum of Understanding (MoU) in textile sector to boost business, reports media.

Ministry of Textile and Israel's Ministry of Trade, Industry and Labour Thursday signed an MoU on the sidelines of the first India International Apparel and Textile Trade show at Tel Aviv in Israel to expand business in areas such as cotton, jute, silk handlooms, clothing and fashion industries.

Indian textiles Secretary Kiran Dhingra and the Director General of Israel's Ministry of Trade, Industry and Labour, Sharon Kedmi signed the MoU that includes exchanging delegations to take this initiative forward.

Dhingra said the initiative would further deepen ties between the two countries and she "would like to see a lot more Israelis wearing Indian clothes".

India's Apparel Export Promotion Council (AEPC) also signed a separate MoU with the Israel Export and International Cooperation Institute (IEAICI). AEPC Chairman A Sakthivel expressed the hope of a major leap in the volume of trade.

However, India is looking forward to sign a Free Trade Agreement (FTA) between the two countries. "Israel is an important market and with the India- Israel FTA in the anvil, we are hopeful of increased trade between the two countries. AEPC for the first time is organizing a Buyer Seller Meet in Israel to capture not only the Israel apparel market but also USD 11 billion apparel market of Middle East region," said Dr A. Sakthivel, Chairman AEPC.

Israel is the only country in the world that has FTAs with both the U.S. and the EU, making it a bridge between the continents. By virtue of the North American Free Trade Area agreement (NAFTA), Israel also enjoys duty-free access to Canada and Mexico.

This agreement, together with the Israel-Mexico FTA (which became effective in the summer of 2000), allows Israel duty-free access to practically all of North America. Israel also has FTAs with Jordan, Egypt, Turkey and the Palestinian Authority.

India is significant trade partner of Israel. Though India has a trade deficit in comparison to Israel, however, prospects for trade relations are high.

Israel in terms of Apparel imports has been ranked as 31st largest importer in world with a share of 0.3 percent of total world apparel import.

India is ranked as 8th largest supplier of apparel to Israel with the share of 2 percent in 2011.

India's export in 2011 was to the tune of USD 21.6 million which had increased by 14 percent from previous year. However share of India's apparel export in Israel apparel import is less than 2 percent.