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  • DAILY CURRENT AFFAIRS:India-UAE Comprehensive Economic Partnership Agreement (CEPA) enters into force

India-UAE Comprehensive Economic Partnership Agreement (CEPA) enters into force

Tags: Economics/Business

The Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates came into force on May 1, 2022.The agreement allows no customs duty to be levied on export/import of  various products. 

  • It was signed between the two nations on February 18, 2022 during  a virtual summit meeting  between Prime Minister Narendra Modi and the  Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.

  •  On 1 May 2022, the  Commerce Secretary BVR Subrahmanyam flagged off the first consignment of goods under the agreement from India to the UAE. 

  • The consignment, comprising jewellery products, will now attract zero customs duty under the agreement between the two nations.

  • CEPA is expected to increase the total value of bilateral trade in goods to over USD 100 billion and trade in services to over USD 15 billion within five years.

  • Gems & Jewellery sector contributes a substantial portion of India’s exports to the UAE and is a sector that is expected to benefit significantly from the tariff concessions obtained for Indian products under the India-UAE CEPA. 

  • Overall, India will benefit from preferential market access provided by the UAE on over 97 % of its tariff lines which account for 99% of Indian exports to the UAE in value terms particularly from labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, pharmaceuticals, medical devices, and Automobiles. 

  • As regards trade in services, Indian service providers will have enhanced access to around 111 sub-sectors from the 11 broad service sectors. 

Kindly also see 19 February 2022 post 


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