India and UAE sign CEPA
India and the United Arab Emirates (UAE) signed a Comprehensive Economic Partnership Agreement (CEPA) that is set to benefit almost 90 per cent of trade -- both exports and imports-- between the two countries. The trade deal has also provided a permanent safeguard mechanism, which will safeguard exporters and businesses from both countries from any unwarranted surge in volumes of any particular product.
More about trade deal
- Several sectors, such as gems and jewellery, leather, plastic products, agriculture products, medical devices, pharmaceutical products, and automobiles will benefit from the agreement.
- India has given duty concessions on gold exported from the UAE, while Indian exporters will attract zero per cent duty on jewellery.
- The trade pact will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs.
- It is expected that the CEPA will lead to an increase in bilateral trade from the current $60 billion to $100 billion in the next five years.
- On the pharma side, the UAE for the first time has agreed that medicine or medical products approved by developed countries will get market access and regulatory approval in a time-bound manner of 90 days for being marketed in the UAE.
- The India-UAE CEPA will be the first of the bunch of trade agreements that India aims to ink with other developed nations over the next few months.
- The UAE is currently India’s third-largest trading partner and the second-largest export destination, after the US.
- The two leaders also released a Joint Commemorative Stamp on the occasion of the 75th anniversary of India's independence and the 50th year of UAE's foundation.