India all set to sign trade pact with UAE tomorrow

New Delhi, Feb 17: The Ministry of External Affairs announced the comprehensive partnership of India (CEPA) and the UAE over the Free Trade Agreement (FTA) which will be signed on Friday, February 18. PM Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed al Nahyan are going to hold a virtual summit on Friday, the statement said.

 

 

A major initiative in bilateral relations is the Comprehensive Economic Partnership Agreement (CEPA). Negotiations for CEPA were launched in September 2021 and have been completed. The Agreement will take India-UAE economic and commercial engagement to the next level. UAE is India’s third-largest trade partner, and bilateral trade and investment ties are expected to see significant enhancements.

 

“Both Leaders are expected to lay out their vision of the historic and friendly relations between the two countries, at a time when India is celebrating 75 years of its Independence as Azadi Ka Amrit Mahotsav and UAE is celebrating the 50th anniversary of its foundation,” the MEA statement said. The two leaders will also discuss bilateral cooperation and exchange views on regional and international issues of mutual interest during the virtual summit.

 

 

The MEA has confirmed the news of FTA between India and the UAE which was being speculated for a few days already. It is learnt that the two leaders will be discussing issues on bilateral cooperation and will exchange views on regional and international issues of mutual interest. As a major initiative to boost bilateral trade, The Comprehensive Economic Partnership Agreement (CEPA) will be signed between the two countries on the same day.

 

On other hand, the FTA will be signed by Indian commerce and industry minister Piyush Goyal and UAE economy minister Abdulla bin Touq Al Marri. Under such free trade agreements, the participating countries reduce or eliminate customs duties on the maximum number of goods traded between them.

 

Earlier in January this year, Australian Minister for Trade Dan Tehan was in New Delhi to discuss long-pending issues with mutual negotiations related to the bilateral trade agreement between the two countries. Indian Minister for Commerce and Industry Minister Piyush Goyal had assured that the CEPA between India and Australia would be signed before the end of this year.

 

 

The ‘Comprehensive Economic Partnership Agreement’ (CEPA) is an agreement signed between two countries intending to liberalize bilateral trade by doing away with many import and export duties on prominent goods. The two countries which sign the pact, deal on reducing customs duties, tariffs, cutting the red tape to attract foreign direct investment, and sometimes share expertise in manufacturing goods and services.

 

Reports suggest that India is negotiating free trade agreements (FTAs) with the UK, Australia, European Union (EU), Canada and Israel, and all of them have negative lists of items where limited or no tariff concessions will be granted. This will be done to protect the interests of domestic industry.