India and the United Arab Emirates (UAE) on February 18, 2022 signed Comprehensive Economic Partnership Agreement (CEPA).
- The India-UAE CEPA is the first bilateral trade accord concluded by the UAE, and it is also India’s first bilateral trade agreement in the MENA region.
Significance of India-UAE CEPA
- It is set to reduce tariffs for 80 per cent of goods and give zero duty access to 90 per cent of India’s exports to the UAE.
- The agreement, which is expected to come into effect in about 60 days, is expected to boost annual bilateral trade to $100 billion within 5 years of its adoption.
- The agreement covers areas including goods, services, rules of origin, Customs procedures, government procurement, intellectual property rights, and e-commerce.
- UAE had agreed to automatic registration and market authorization for Indian medicines in case of their regulatory approval in developed countries such as USA, EU, UK and Japan.
- The UAE is India’s third largest trade partner and bilateral trade is expected to surpass USD 60 billion mark in the current financial year.
- India ranks as the UAE’s number one trading partner for non-oil exports, accounting for nearly 14 percent of the UAE’s total non-oil exports globally.
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