India-UAE trade pact set to almost double two-way trade to USD 100 billion in 5 years

India

oi-PTI

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New
Delhi,
Feb
18:

The
Comprehensive
Economic
Partnership
Agreement
sealed
by
India
and
the
United
Arab
Emirates
on
Friday
is
expected
to
facilitate
Indian
exporters
to
gain
access
to
the
Arab
and
African
markets
besides
increasing
the
two-way
trade
to
USD
100
billion
in
the
next
five
years
from
current
USD
60
billion.

India-UAE trade pact set to almost double two-way trade to USD 100 billion in 5 years

The
pact
was
signed
by
Commerce
Minister
Piyush
Goyal
and
the
UAE’s
Economy
Minister
Abdulla
bin
Touq
Al
Marri
during
a
virtual
summit
between
Prime
Minister
Narendra
Modi
and
Crown
Prince
of
Abu
Dhabi
Sheikh
Mohammed
bin
Zayed
Al
Nahyan.
The
agreement
will
provide
significant
benefits
to
Indian
and
UAE
businesses,
including
enhanced
market
access
and
reduced
tariffs,
an
official
statement
said.

“It
is
expected
the
CEPA
9Comprehensive
Economic
Partnership
Agreement)
will
lead
to
an
increase
in
bilateral
trade
from
the
current
USD
60
billion
to
USD
100
billion
in
the
next
five
years,”
it
said.
Under
the
provision
of
the
CEPA,
Indian
exporters
will
not
only
gain
market
access
in
the
UAE
but
will
also
provide
them
wider
access
to
the
much
larger
Arab
and
African
markets,
according
to
officials.

They
said
CEPA
is
expected
to
help
in
unlocking
new
trade
routes
between
Africa
and
Asia.
The
officials
said
the
pact
will
ensure
substantial
net
gains
for
India,
particularly
in
labour-intensive
industries
such
as
gems
and
jewellery,
textiles,
leather,
footwear,
sports
goods,
plastics,
furniture,
agricultural,
engineering
products,
medical
devices,
and
automobiles.
They
said
90
per
cent
of
the
Indian
exports,
in
terms
of
value,
to
the
UAE
will
get
market
access
at
zero
duty
from
day
one
of
the
entry
into
force
of
the
agreement.

Zero
duty
will
be
applicable
within
five
to
10
years
on
an
additional
nine
per
cent
of
the
trade
value
for
products
such
as
electronic
goods,
chemicals
and
petrochemicals,
articles
of
stone,
cement,
ceramics
and
machinery.
The
UAE
is
also
offering
immediate
duty
elimination
on
over
80
per
cent
of
its
tariff
lines
corresponding
to
90
per
cent
of
India’s
exports
in
value
terms,
according
to
the
provisions.

The
CEPA
covers
trade
in
goods,
rules
of
origin,
trade
in
services,
technical
barriers
to
trade,
dispute
settlement,
telecom,
customs
procedures,
pharmaceutical,
digital
trade
and
cooperation
in
other
areas.
The
officials
said
that
for
the
first
time
in
a
trade
agreement,
a
separate
annexe
on
pharmaceuticals
has
been
incorporated
to
facilitate
access
to
Indian
pharmaceutical
products.

They
said
CEPA
is
likely
to
benefit
about
USD
26
billion
worth
of
Indian
products
that
are
currently
subjected
to
five
per
cent
import
duty
by
the
UAE.
In
the
services
sector,
the
UAE
has
offered
111
sub-sectors
to
India
as
compared
to
100
sub-sectors
by
India
to
the
UAE.
Substantial
gains
in
India’s
areas
of
interest
include
computer-related
services,
audiovisual
services,
educational
services,
health
services,
tourism
and
travel-related
services
and
professional
services
(nursing,
engineering,
accountancy
etc),
according
to
the
pact.

The
officials
said
the
UAE
has
committed
to
making
significant
investments
in
India’s
infrastructure.
The
CEPA
will
also
provide
a
platform
for
SMEs
in
both
countries
to
expand
internationally
by
granting
them
access
to
new
customers,
networks,
and
avenues
of
collaboration,
the
officials
said.
PTI

Story first published: Saturday, February 19, 2022, 0:31 [IST]

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