India is set to sign a trade and investment agreement with the United Arab Emirates (UAE) on Friday during a virtual summit attended by the two countries’ leaders
File photo of Sheikh Mohamed bin Zayed al Nahyan and PM Narendra Modi. PTI
India is set to sign a trade and investment agreement with the United Arab Emirates {UAE} on Friday during a virtual summit attended by the two countries’ leaders.
As per UAE state news agency WAM, the agreement will “usher in a new era of economic cooperation and unlock greater avenues for trade and investment”.
The agreement, Comprehensive Economic Partnership Agreement {CEPA}, will be signed during a virtual meeting between Prime Minister Narendra Modi and the Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed al Nahyan.
According to Indian Express, the Ministry of External Affairs {MEA} said both leaders are expected to lay out their visions for the historic and friendly bilateral ties.
The ministry said that Modi and Al Nahyan, who is also the deputy supreme commander of the UAE armed forces, will discuss bilateral cooperation and exchange views on regional and international issues of mutual interest.
What is the CEPA trade agreement and how it will impact India and UAE’s bilateral relations, let’s take a look:
What is CEPA
As per Livemint, the two countries launched negotiations on the pact, CEPA, in September last year.
The CEPA agreement aims to reduce or eliminate customs duties on the maximum number of goods traded between the two countries.
It will also liberalise norms to enhance trade in services and boost investments.
Objectives and terms of CEPA can depend on the countries involved. The terms are tailor-made with freedoms and restrictions depending on the countries involved.
The negotiations can take up to years to finalise the terms that both the countries can agree upon.
While the objectives of CEPA can vary depending upon the countries involved, in essence, it is meant to liberalise and facilitate trade in goods and services between the parties.
In February last year, India had inked the Comprehensive Economic Cooperation and Partnership Agreement {CECPA} with Mauritius.
Apart from the proposed deal with the UAE, India has been holding negotiations with Canada for some time now. India signed CEPA with South Korea and Japan in 2009 and 2011, respectively.
Bilateral trade between India and UAE
UAE is India’s third-largest trade partner. In the year 2020-21, the bilateral trade between the two countries stood at USD 43.3 billion, according to the Mintnewspaper.
The trade includes exports worth $16.7 billion and imports of $26.7 billion in the fiscal year.
Commerce and Industry Minister Piyush Goyal said that the UAE is a gateway to all Africa and many other parts of the world. The UAE is also a large market for products like textiles, gems and jewellery, leather, footwear and food items.
According to the Financial Express, the Gulf nation lifted a ban on import of eggs and poultry products from India in December 2021.
One person in the know of the deal told Hindustan Times that there is a potential of $100 billion bilateral trade in goods and $15 billion in services in five year.
The CEPA terms between the two countries may also include the welfare of Indian workers in the UAE.
With inputs from agencies
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