Biggest bilateral trade pact between India, UAE comes into force

Tags: International Relations Latest

The historic India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was signed between the two countries on 18 February 2022, officially came into force from 1 May.

• Under the agreement, domestic exporters of products of textiles, agriculture, dry fruits, gems and jewellery will get duty-free access to the UAE market.

• In a symbolic start to the implementation of the agreement, Commerce Secretary BVR Subramaniam handed over the place of origin certificates to three exporters from the gems and jewellery sector.

• Under the Comprehensive Economic Partnership Agreement (CEPA), these consignments sent to Dubai will not attract customs duty.

• Background

• CEPA, a comprehensive path-breaking trade agreement between India and the United Arab Emirates, was signed on February 18 during a virtual summit between Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan.

• The agreement was signed and exchanged by Minister of Commerce and Industry Piyush Goyal and UAE Minister of Economy Abdullah bin Touq Al Marri.

• Significance of the agreement

• The agreement will provide significant benefits to Indian and UAE businesses, including increased market access and lower tariffs.

• Through CEPA, the target is to increase bilateral trade from the current $60 billion to $100 billion in the next five years.

• Overall, India will benefit from the preferential market access provided by the UAE on over 97% of its tariff lines.