India and UAE on February 18 are likely to sign a proposed free trade agreement (FTA) which would give both duty-free access to a number of products from different sectors.
The signing of the FTA is expected on the sidelines of Prime Minister Narendra Modi hosting a virtual summit tomorrow with Deputy Supreme Commander of the UAE Armed Forces and Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed al Nahyan.
The move is expected as, going by the external affairs ministry, negotiations for the Comprehensive Economic Partnership Agreement launched in September have been completed, which marks a major initiative in bilateral relations.
Both sides had hoped to end the CEPA part of the talks by the end of December, a deadline so tight that it was considered unprecedented. Both nations had publicly stated that they wished to sign a formal agreement in the early part of 2022.
Under FTA, two trading partners reduce or eliminate customs duties on a number of goods. Besides, they liberalise norms to enhance trade in services and boost investments. This would be the second such agreement to be signed by the current government.
Trade between India and the UAE across thousands of items was worth $43.3 billion in 2020-21, down from $59 billion in 2019-20. The UAE remains India's third-largest export destination as well as the third-largest source of imports.
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