The leaders virtually discussed strengthening bilateral cooperation in various sectors and talked about issues of mutual interest — regional and global.
To touch a target of USD 115 billion over the next five years, India and the United Arab Emirates (UAE) signed the first ever Comprehensive Economic Partnership Agreement (CEPA) late Friday evening. The agreement was inked at the end of a virtual summit between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, Sheikh Mohamed bin Zayed al Nahyan.
Agenda of the talks between the two leaders besides the CEPA was on forging better and deeper ties as well and looking for a new chapter in their ‘comprehensive strategic partnership’. The leaders virtually discussed strengthening bilateral cooperation in various sectors and talked about issues of mutual interest — regional and global.
The CEPA between India and the UAE
Both leaders witnessed the signing of the agreement in a virtual summit. From India it was the Minister of Commerce and Industry Piyush Goyal and from the UAE Minister of Economy, Abdulla bin Touq Al Marri.
Since September 2021, both sides have had several rounds of negotiations for an early conclusion of the pact. It took four months to complete the negotiations and is expected to be a template for the relaunch of India-GCC FTA negotiations which are on a back burner due to differences among the member countries over several issues including petrochemicals.
As reported by Financial Express Online, this agreement is expected to enhance the commercial and economic engagement between the two countries.
The Gulf nation is India’s third-largest trade partner and with the agreement in place significant enhancement is expected in bilateral trade and investments. Both countries are making efforts to bring back the bilateral trade to the pre-COVID-19 level of USD 60 billion. And over the next five years to increase to USD 100 billion in goods and in services USD 15 billion.
Compared to USD 3 billion investment from that country in India in 2014, it has reached around USD 17 billion today. The UAE has also shown interest in investing in Jammu & Kashmir.
Union Territory of J&K and the UAE
In 2020, Geographical Indication (GI) tagged Kashmir saffron was launched in the Gulf nation for the first time by Abu Dhabi-based Lulu Group International.
Financial Express Online had reported that the UAE based company was keen on sourcing a wide range of agricultural products from J&K besides apples. The company has also plans of setting up logistic facilities and offices in the Union Territory of J&K.
With the CEPA signed, perishable products including pears, plums, and cherries too will be heading to that country.
Under the new agreement, India hopes to get deeper access in the UAE market for labour-intensive items like chemicals & pharmaceuticals and engineering goods, gems and jewellery, and textiles and apparels. This agreement is expected to provide greater mobility to India’s service providers.
Also, it has been ensured that third country exports are not routed through UAE into India and for this Rules of Origin restrictions are in place.
For the first time there is a digital trade element which is aimed at strengthening cooperation between the two countries on digital trade.
What does this mean?
The chapter related to the digital trade is expected to include online consumer protection, address issues like intellectual property rights in digital trade and challenges to small and medium enterprises.
https://www.financialexpress.com/defence/first-ever-trade-agreement-between-india-and-uae-done-leaders-discuss-deeper-cooperation/2438310/
