 "FTA, Free Trade Agreement, Trade Ties, Deals, Partnership")
Key officials from India and the United Arab Emirates (UAE) will meet for two days from June 11 to review the progress of the year-old Comprehensive Economic Partnership Agreement (CEPA).
A delegation from the UAE will be in Delhi next to meet key officials from the department of commerce, a person aware of the matter said.
“Officials of Customs departments from both sides are also expected to meet and work out a mechanism towards data sharing, which will aid in deciphering the utilisation of the trade deal,” the official cited above told Business Standard.
Besides, committees will also be set up on each policy area or chapter, such as services, investment, under the trade deal. A business delegation will also be present to discuss investment opportunities in India.
The India-UAE CEPA entered into force on May 1, 2022. Under the deal, both countries have exchanged tariff concessions on products of mutual export interests. The UAE offered tariff concessions to India on over 97 per cent of its tariff lines amounting to 99 per cent of trade in value terms. India, on the other hand, has offered preferential access to the UAE on over 90 per of its tariff lines, including lines of export interest to the UAE.
CEPA progress
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The UAE is India’s second largest export market, after the United States (US), and third largest trading partner after the US and China at $31.61 billion and $84.84 billion, respectively.
India is hoping to export goods worth $50 billion to the West Asian nation by FY27.
While total trade between both nations grew 16 per cent year-on-year to $84.84 billion in FY23, it was mainly due to higher imports, driven by inbound shipments of oil hitting the domestic shores from the UAE.
Trade deficit stood at $21.62 billion. Government officials, however, pointed out that the deficit was expected to narrow amid cooling down of petroleum prices globally.
During the CEPA implementation period, the bilateral trade increased to $76.9 billion, up 14 per cent YoY. During the same period, India’s exports to the UAE witnessed an 8.5 per cent jump on year to $28.5 billion, while exports to the rest of the world, excluding the UAE grew 3.1 per cent. The jump in exports was mainly due to higher demand for sectors, such as gems and jewellery, machinery and automobiles. Export of products, such as iron and steel and textiles, contracted due to imposition of export restrictions and tepid demand, respectively.
According to the commerce department’s analysis shared last month, during May-March (2022-23), the India-UAE CEPA has surpassed almost all other free trade agreements in terms of utilisation. The number of certificates of origin has been the highest in the case of India-ASEAN FTA at 149,000. This was followed by the trade deal with the UAE as 54,142 certificates of origin were issued to exporters to avail concessional duty advantage under the trade pact.
Trade deficit stood at $21.62 bn
