CONCERTED efforts are being made to expand the IndiaUAE Comprehensive Economic Partnership Agreement (CEPA) that was signed between the two countries over two years ago.
As a result of the agreement that came into force on May 1, 2022, businesses can take advantage of several benefits, including greater access for UAE exports entering the Indian market through the reduction or removal of tariffs on more than 80 per cent of products.
Among the other benefits of the CEPA are an open and non-discriminatory environment for cross-border trade with India; enhanced market access for UAE’s service providers across 11 sectors and more than 100 sub-sectors; and removal of unnecessary technical barriers for UAE and Indian exporters.
Private sector focus
In an interaction with financialexpress. com, Abdulla Bin Touq, Minister of the Economy of the United Arab Emirates, said the primary focus was to ensure that our private sectors are maximising the full scope of the deal, especially in the sectors where tariffs are being reduced over time.
“We are still at the beginning of our journey so it’s important to ensure that the business communities in both countries are able to understand and leverage the opportunity in front of them,” he said. According to him, the collaboration extends to future technologies, with both countries committing to joint ventures in digital infrastructure and artificial intelligence.
This partnership, he told the website, is not just about economic gains but also about strengthening people-to-people connections, as seen in the UAE’s revamped visa policies that facilitate greater mobility and talent exchange.
Resounding success
Speaking at an event in Mumbai to mark the second anniversary of the coming into force of the CEPA, UAE Ambassador Abdulnasser Alshaali said there has been a remarkable growth in bilateral trade between the two countries after inking of the mega trade pact.
“The UAE-India CEPA has emerged as a resounding success story, solidifying our nations’ long-standing economic ties and ushering in a new era of prosperity,” Alshaali said. “Over the past two years, we have witnessed remarkable growth in bilateral trade, a testament to the immense potential that exists when our complementary strengths are harnessed effectively,” he said.
Elevation of ties
Following the landmark visit of Prime Minister Narendra Modi to the UAE in August 2015, bilateral relations between the two countries were elevated to a Comprehensive Strategic Partnership. Both countries signed the CEPA in February 2022 and a Local Currency Settlement (LCS) System in July 2023 to promote the use of Indian Rupee and AED (United Arab Emirates Dirham) for cross-border transactions.
