India and UAE Sign the Historic CEPA Aimed at Boosting Goods Trade to US $ 100 Billion Over Next Five Years

The signing of a free trade agreement between India and the United Arab Emirates (UAE) on Friday, according to Commerce and Industry Minister Piyush Goyal, will help raise bilateral commerce to $100 billion in the next five years and create millions of employment. Are going to get

After the signing of the Free Trade Agreement (FTA) between India and the UAE, Goyal told reporters that the Comprehensive Economic Partnership Agreement (CEPA) might take effect in May, covering roughly 90% of Indian products from day one. Exports to the United Arab Emirates will be permitted.

The trade agreement was struck during Prime Minister Narendra Modi’s online meeting with Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al Nahyan. Goyal, the Indian Minister of Railways, and Abdullah bin Touq Al Marri, the UAE Minister of Economy, inked the deal. In addition, the two countries released a framework to strengthen their ties in a variety of areas.

The free trade pact will help Indian and UAE businesses significantly. Better market access and lower fee rates are among the benefits. In the following five years, the FTA is expected to expand bilateral commerce between the two countries from $60 billion to $100 billion.

It’s worth noting that India and the UAE began formal trade discussions in September of last year. In a world record 88 days, the 881-page settlement was concluded.

This is a thorough and balanced trade agreement, according to Goyal.

“This is a great new deal that has helped the pharmaceutical business for the first time,” the minister remarked. This will help our products gain traction in the UAE… The UAE is a gateway to other countries in West Asia and the entire African continent because of its commerce hub.”

Textiles, handlooms, gems and jewelry, leather and footwear will all benefit from the pact, which will result in the creation of one million employment.

In the pharmaceutical industry, Goyal stated that the UAE has promised to provide market access and regulatory clearances for medical items manufactured in India that have been approved by the European Union, the United Kingdom, Canada, or Australia within 90 days of application submission.

While the UAE has agreed to eliminate duty on Indian jewelry, India has agreed to exempt up to 200 tonnes of gold imports from charge.

In discussing the benefits of the Indian services industry, he stated that the deal would facilitate market access for a variety of services industries.

In terms of the benefits to UAE investors, Goyal stated that both parties are working on an agreement in India that will expedite infrastructure and logistics projects.

He further stated that the agreement contains security provisions. This has been subjected to ongoing security procedures.

According to the minister, the UAE government agency will confirm the products’ origin. As a result, citizens are unable to import goods from any third country.

Thani bin Ahmed Al Zeyodi, the UAE’s Minister of State for Foreign Trade, said the pact would boost the UAE’s national GDP by 1.7 percent, or $8.9 billion, by 2030, and increase exports by 1.5 percent.

Goods, services, rules of origin, customs processes, government procurement, intellectual property rights, and e-commerce are all covered by the agreement.

Both partner countries decrease or abolish customs charges on most traded commodities under these types of agreements. Furthermore, they relax rules in order to boost business and investment in the services sector.

In 2020-21, bilateral trade between the two countries was $43.3 billion.

The United Arab Emirates is regarded as a gateway to Africa and other parts of the globe.