Textiles, Gems & Jewellery, Machinery & Engg products and chemicals to benefit from India-UAE FTA likely to be inked on 6 Jan 2022 ...
Textiles, Gems & Jewellery, Machinery & Engg products and chemicals to benefit from India-UAE FTA likely to be inked on 6 Jan 2022
New Delhi, 28 Dec (KNN) The Union Cabinet is expected to soon take up the final draft of India-UAE free trade agreement proposal for its approval after discussions between the two parties have been concluded, as published in BusinessLine.
A source informed the media house that “The Cabinet approval for the India-UAE Comprehensive Economic Partnership Agreement (CEPA) is expected to come in time for Prime Minister Narendra Modi’s visit to Dubai, scheduled around 6th January, 2022 where the pact is likely to be formalised.”
Exports from India that could benefit from the CEPA include textiles, gems & jewellery, petroleum products, engineering and machinery products and chemicals. Gains will, however, be limited as import duties on most goods are at 5 per cent in the UAE.
The source also said that “Market access in services, including mutual recognition agreements for various professions, is also an area of primary interest for India.
Other areas including investments and government procurement will also be included in The CEPA.
India’s main concern in this agreement is that the UAE should not be used by third countries to ship their products to India at concessional import duties negotiated under the CEPA.
“While the Indian industry can face competition from the UAE, the situation can get serious if items from other countries also start getting in. It is, therefore, important to fix strong rules of origin,” the source said.
According to the source India is aiming to become the number one trading partner of the UAE, which was even mentioned by the Commerce & Industry Minister Piyush Goyal that UAE is a gateway to Gulf Cooperation Council and all of Africa.
The legal procedures and ratifications to implement the CEPA may take some more time. It is expected to cover a wide range of areas including goods (both industrial and agricultural), services, investments and government procurement.
