UAE’s non-oil trade with India to rise by 120%

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The trade deal, which will come into effect on May 1 ‘Labour Day’, is expected increase trade exchange by 120 percent to US$100 billion in five years, reports Asian Lite Newsdesk

India and UAE are looking at May 1 ‘Labour Day’ to bring Comprehensive Economic Partnership Agreement (CEPA) into effect, Union Commerce and Industry Minister Piyush Goyal told ANI after the singing of CEPA between the two countries.

India and the United Arab Emirates on Friday signed CEPA that will help bolster the strategic partnership and take bilateral economic and commercial engagement to the next level.

CEPA was signed during a meeting between the Commerce and Industry Minister Piyush Goyal and UAE delegation led by Minister of Economy, Abdulla bin Touq Al-Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi.

The CEPA will increase trade exchange by 120 percent to US$100 billion in five years, compared to the current trade exchange amounting to $45 billion.

Prime Minister Narendra Modi addressing at the India-UAE Virtual Summit, in New Delhi on February 18, 2022. (PIB)

Separately, Prime Minister Narendra Modi and Crown Prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan held a Virtual Summit earlier today. Both leaders expressed deep satisfaction with the continuous growth in bilateral relations in all sectors.

Prime Minister and the Crown Prince issued a Joint Vision Statement “Advancing India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone”.

The Statement establishes a roadmap for a future-oriented partnership between India and UAE and identifies focus areas and outcomes. The shared objective is to promote new trade, investment and innovation dynamics in diverse sectors, including economy, energy, climate action, emerging technologies, skills and education, food security, healthcare and defence and security.

A major highlight of the Virtual Summit was the signing and exchange of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) by Minister of Commerce and Industry Piyush Goyal and Minister of Economy of UAE, Abdulla bin Touq Al Marri in the virtual presence of the two Leaders.

The Agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs. It is expected that the CEPA will lead to an increase in bilateral trade from the current USD 60 bn to USD 100 bn in the next 5 years.

India’s Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal and the Minister of Economy of UAE, Abdulla bin Touq Al Marri signing the India-UAE Comprehensive Economic Partnership Agreement (CEPA), in New Delhi on February 18, 2022. (PIB)

The two Leaders also released Joint Commemorative Stamp on the occasion of the 75th anniversary of India’s independence and the 50th year of UAE’s foundation. Two MOUs signed between Indian and UAE entities were also announced during the Summit.

These are, MOU between APEDA and DP World and Al Dahra on Food Security Corridor Initiative and MOU between India’s Gift City and Abu Dhabi Global Market on cooperation in financial projects and services. Two other MOUs – one on cooperation in Climate Action and the other on Education have also been agreed between the two sides.

Textiles, handloom, jewellery to benefit

Union Minister of Commerce and Industry Piyush Goyal on Friday said that sectors such as textiles, handloom, jewellery, and footwear will benefit from the Comprehensive Economic Partnership Agreement (CEPA) signed between India and UAE.

India and the United Arab Emirates today signed CEPA that will help bolster the strategic partnership and take bilateral economic and commercial engagement to the next level.

“Sectors like textiles, handloom, gems, and jewellery, leather goods, footwear will benefit from the India-UAE Comprehensive Economic Partnership Agreement. These are products that provide huge employment for people in India,” Piyush Goyal told ANI.

After the signing of CEPA, the union minister said medicines made in India will get access to the UAE market within 90 days of submission of an application on zero duty.

“The medicines made in India which are approved by the United States approved by the EU or UK, Canada, or Australia will get access to the UAE market within 90 days of submission of an application on zero duty,” he said.

“Around 90 per cent of products are exported to the UAE, estimating around Rs 2 lakh crore. The products that will be exported to the UAE market include leather, footwear, sports goods, furniture, cotton, agricultural goods, engineering products,” he further said.

Goyal noted that petroleum products will be brought to India from the UAE. “Other metals and minerals can come to India on less duty. This will help industries in India to use raw materials at a cheap rate and this will benefit the consumers in India.

CEPA was signed during a meeting between the Commerce Minister Piyush Goyal and the UAE delegation led by Minister of Economy, Abdulla bin Touq Al-Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi.

The Agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs. It is expected that the CEPA will lead to an increase in bilateral trade from the current USD 60 bn to USD 100 bn in the next 5 years. (ANI)

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