Biggest bilateral trade pact between India, UAE comes into force
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.
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.
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