India and UAE signed a Mutual Recognition Arrangement for Authorized Economic Operators

Tags: International Relations International News

India and the United Arab Emirates (UAE) on 23 June have signed a Mutual Recognition Arrangement for Authorized Economic Operators.

An overview of the news

• The agreement was formally signed during the World Customs Organization's (WCO) Customs Co-operation Council meeting held in Brussels.

Aim of Mutual Recognition Arrangement

• The Mutual Recognition Arrangement aims to promote trade facilitation and ease of doing business between the two countries.

• It establishes a framework for recognizing Authorized Economic Operators (AEOs) from both India and the UAE.

Significance

• The recognition of AEO status will streamline customs procedures, reduce administrative burdens, and lower costs for authorized businesses.

• This agreement signifies an important milestone in the economic cooperation between India and the UAE and is expected to strengthen bilateral trade ties.

• By leveraging the benefits of the Mutual Recognition Arrangement, both countries aim to enhance trade facilitation, improve the ease of doing business, and encourage investments.

India-UAE Comprehensive Economic Partnership Agreement (CEPA)

• The signing of this arrangement is in line with the broader objective of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) signed in February 2022.

• CEPA aims to significantly increase the total value of bilateral trade in goods and services within five years.

• The Mutual Recognition Arrangement is expected to contribute to achieving the trade targets set under the CEPA, fostering greater economic growth and cooperation between India and the UAE.