India-UAE Trade Pact Review: Addressing Precious Metal Import Concerns
Indian and Emirati officials set to review trade agreement amid concerns over increased precious metal imports. UAE delegation, led by Crown Prince, to visit India for discussions on economic partnership.
Officials from India and the United Arab Emirates (UAE) are preparing to review their Comprehensive Economic Partnership Agreement (CEPA) this week. The review comes in response to concerns raised by Indian industry regarding a significant increase in precious metal imports from the UAE.
The CEPA, signed in 2022 after a mere 88 days of negotiations, has become a model for similar trade agreements between the UAE and other nations. This landmark agreement marked a significant milestone in the India-UAE relationship, which dates back to the establishment of diplomatic ties in 1972.
An unnamed Indian government official stated that the review would coincide with the visit of a UAE delegation led by Crown Prince Sheikh Khaled bin Mohamed Al Nahyan to Mumbai and New Delhi. The Crown Prince, who also serves as the UAE's deputy national security adviser, is expected to arrive in India on September 8, 2024.
The review is partly prompted by concerns from Indian industry about the substantial increase in precious metal imports from the UAE. Indian officials are reportedly seeking to examine various aspects of the agreement, including the rules of origin compliance.
"Reviews take place from time to time."
It's worth noting that the UAE is India's third-largest trade partner, with bilateral trade reaching $88 billion in the 2022-23 fiscal year. The CEPA aims to boost this figure to $100 billion within the next five years, highlighting the ambitious goals set by both nations.
The agreement has already had a significant impact on trade relations, eliminating tariffs on 80% of products exported from India to the UAE. This has contributed to the UAE becoming India's second-largest export destination.
The India-UAE relationship extends beyond trade. The UAE is home to approximately 3.5 million Indian expatriates, making them the largest community in the Gulf state, outnumbering Emiratis. These expatriates play crucial roles in various sectors that form the backbone of the UAE economy.
Moreover, the UAE is the 7th largest investor in India, with an estimated investment of $18 billion. Conversely, Indian companies have invested over $85 billion in the UAE, demonstrating the strong economic ties between the two nations.
As the review approaches, both sides are expected to address concerns while maintaining the spirit of cooperation that has characterized their relationship. The outcome of these discussions could have far-reaching implications for the future of India-UAE trade relations and potentially influence similar agreements with other nations.
