CEPA Trade Agreement Between UAE and India Enters into Force on May 1
From May 1, India and the United Arab Emirates will have a Comprehensive Economic Partnership Agreement (CEPA), granting duty-free access to 90% of the country's exports to the UAE.
The first consignment from India to UAE under the pact is flagged off by the commerce and industry ministry officials on Sunday. About 26 billion dollars worth of Indian products currently subject to 5% import duty by the UAE, India's third-biggest trading partner after the United States and China, will benefit from the CEPA.
With a preferential market access agreement, India will be able to access UAE markets on more than 97% of its tariff lines, which represent about 99% of Indian exports in value terms. These value terms mainly include labour-intensive industries like gemstones and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, engineering products, medical devices, and automobiles.
India's pharma exports to the UAE of $250 million could increase substantially due to the CEPA deal. In addition, a separate Annex on pharmaceuticals has also been agreed upon by both sides, which facilitates easy access to Indian pharmaceuticals, especially automatic registration and marketing authorization within 90 days for products that meet specified criteria.
UAE exports will be eligible for preferential treatment on over 90% of New Delhi's tariff lines, including items of interest to the UAE.
The two countries signed a CEPA on February 18, doubling their bilateral trade from $60 billion to $100 billion over the next five years.
In addition to being the first comprehensive trade deal with any country in the region, it is also the first bilateral agreement between India and any country.
Around 100 subsectors of service have been opened to the United Arab Emirates by India. By comparison, Indian service providers will access 111 subsegments within 11 broad service areas.
Further, in partnership with the Ministry of Economy (MoE) of the UAE, the Abu Dhabi Department of Economic Development (ADDED) organized a workshop for private sector companies to benefit from the agreement. It is one of the largest markets offering growth opportunities for different sectors and is one of the top trading partners of Abu Dhabi and the UAE.
The CEPA trade agreement between the UAE and India will increase bilateral trade and expose the UAE to new market landmarks.