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Iran proposes free trade agreement with India: Kher

Press Trust of India  |  New Delhi 

Expecting the removal of trade sanctions imposed on it by western nations, has proposed a free trade agreement with to boost bilateral trade and investment. The matter came up for discussion during the recent visit of Commerce Secretary Rajeev Kher to Tehran. He was there for the first meeting of the joint working group (JWG) of the two countries. "is very keen to enhance its trade relations with It wants to increase its share in the global trade and they said that can play a very major role in fulfilling that ambition," Kher told PTI. "has proposed to negotiate a preferential trading agreement with us. I told them that will consider this proposal very positively and will soon respond after taking the appropriate mandate from the government," he added. Kher said the pact would be beneficial for as through Iran, it can get market access to some parts of and He said he his Iranian counterpart and members of several industry chambers in Tehran and now the JWG would meet every year as it would institutionalise the framework. is in the process of reaching an understanding with the six world powers on its contentious nuclear programme, which may ultimately lead to lifting of trade sanctions on the Islamic nation.

The move would help to enhance its trade ties with its trading partners including On discussions over basmati rice exports to Iran, Kher said raised the issue of high import duty, declining imports of the commodity from and stringent standards. "We discussed all the issues on basmati rice. has said that they have adopted the Codex plus standard and they expect all their suppliers to comply with them. Indian exporters would have to comply with that. We will see how we can do that," he said. Codex is an international standard for food trade for safety, quality of products. Iran, however, assured that it would increase imports of basmati rice from as "New Delhi is a chosen partner for basmati rice for them", he added. India's basmati rice exports to that country have declined to USD 600 million from USD 1.4 billion annually. has not being issuing fresh import permits since October 2014. India's overall basmati rice exports declined by over six per cent to 2.57 million tonne during April-December 2014 as compared to 2.74 million tonnes in the same period last year. is the largest basmati rice importer, accounting for around 60-65 per cent of total basmati rice exports from Basmati rice was India's second largest export commodity after buffalo meat to

First Published: Fri, April 10 2015. 14:42 IST