The reset marks a shift from strained political ties to renewed economic cooperation, with both sides eyeing deeper trade, technology and energy partnerships.
The next round of negotiations is expected in July-August, 2025. India and Chile aim to conclude their trade negotiations for a Comprehensive Economic Partnership Agreement (CEPA) by 2026.
India’s trade with the UAE has risen faster after the signing of CEPA but 65 percent is still oil and jewellery-dependent
The UAE-India Comprehensive Economic Partnership Agreement entered into force on May 1, 2022.
Officials from India and South Korea met earlier this year in January for the 10th round of official negotiations to upgrade the bilateral Comprehensive Economic Partnership Agreement, or CEPA.
It was discussed during an official-level meeting of the Joint Working Group on Trade (JWG) between India and Bangladesh, which was held last week in Dhaka.
Now that the knives are drawn on both sides, with bilateral ties nose-diving, the trade pact seems like a distant dream. Last week, a fuming India had decided to press the pause button on the negotiations for a bilateral free trade agreement
India and UAE on June 12 agreed more than double the trade in non-petroleum products by 2030. The two countries successfully held the first meeting of the Joint Committee of the India-UAE CEPA.
India and the United Arab Emirates (UAE) inked a CEPA on February 18 last year to boost trade ties following a virtual summit between Prime Minister Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.
After USA and China, UAE became India’s 3rd largest trading partner.
The UAE is India's third-largest trade partner globally, after the United States and China. Meanwhile, bilateral trade with Oman has grown by 82 percent to reach $9.9 billion in 2021-2022.
Under the trade agreement, domestic exporters in various sectors like textiles, agriculture, dry fruits, gems and jewellery are availing duty-free access to the UAE market. The delegation would visit Delhi and Mumbai and will hold discussions with industry leaders.
The product categories include jewellery (except for 2.5 tons quota for gold jewellery), plastics, scrap of aluminium and copper, most automobiles and automotive components, medical devices, dairy products, fruits, cereals, sugar, food preparations, tobacco products, dyes and pigments, natural rubber, tyres, and processed marble.
The agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs.
Defending the ongoing hike in the prices of fuel, Goyal said the prices of all edibles and food products have hiked in the whole world in view of the international condition.
The agreement comes with several new provisions to maximise India’s exports while also adding new sectors such as digital trade and intellectual property rights. Commerce department officials are hopeful the first of India’s ‘new-age FTAs’ will set the bar high for all trade deals to follow.
According to Commerce Secretary BVR Subrahmanyam, the liberalised visa regime includes visa provisions for intra-corporate transfers, business visitors and contractual service suppliers
Trade negotiations are substantially about expanding the area of the possible, and gradualism is a given approach. Seen through this lens, the pace at which Goyal has piloted these, building personal rapport with his counterparts, are nothing short of big-bang
The pact will not only enhance India's commercial ties with the Emirati nation, but also provide an "entry point" in several parts of Africa and the Middle East, Goyal said.
The signing of the India-UAE CEPA demonstrates that the Narendra Modi government has mastered the art of practical policy-making.
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The Indian delegation was led by Union Minister of Commerce and Industry Piyush Goyal, while the UAE delegation was led by Minister of Economy Abdulla bin Touq Al Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi.
India has committed to opening a new Indian Institute of Technolgy would be set up in the UAE, while the UAE would invest more in India's health sector. Both nations have also decided to focus more on strengthening supply chains for medical supplies and agri trade.
The ‘early harvest’ deal includes tariff reduction and market access for more exports, and will be followed by a comprehensive free trade agreement later. Announced in September 2021, negotiations on the deal were completed in record time.
Proposed trade pacts with up to eight nations are at various levels of discussion. While India is preparing trade offers for accelerating negotiations, Commerce Department officials say more time will be needed.