Israeli Prime Minister Benjamin Netanyahu said on Wednesday his government will abide by the past agreements inked with the Palestinians, and will insist on reciprocity in future peace talks with the Palestinian National Authority.

Netanyahu made the remarks at a Knesset (parliament) session in Jerusalem, but he failed to name the agreements and give details.

He also said "We will insist on reciprocity in talks with Palestinians ... in both the demands raised as well as their implementation."

The hard-line prime minister said he is eager to "bring Arab states into the circle of peace," a goal he said is shared with the US administration.

"Bringing Arab states into the circle of peace will strengthen Israel and bring security to the Palestinians as well," he said, adding that the Obama administration would also seek to advance "normalization" of ties between Israel and Arab countries.

Netanyahu responded to catcalls from Kadima lawmakers by accusing his predecessor of failing to yield results in its talks with the Palestinians.

"My peace policy will bring results faster than the government which was led by those sitting in the opposition today," Netanyahu was quoted by local daily Ha'aretz as saying.

Meanwhile, the prime minister said he is eager to advance economic initiatives in the agricultural field for the Palestinian territories.

His government would seek to attract investments from the Gulf Arab states, Europe and Asia in an effort to boost the Palestinian economy, he added.

Furthermore, Netanyahu told lawmakers and ministers that he had reached understandings with US President Barack Obama on key defense issues, saying that the Obama administration accepted Israel's position on Iran.

Last week, Netanyahu paid his first official visit to the United States since he took office as Israeli prime minister in late March. During his stay in Washington, he held talks with Obama and other senior US officials, focusing on Iran's nuclear program, Israeli-Palestinian peace process and bilateral relations.

(Xinhua News Agency May 28, 2009)