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The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022 and effective from May 2022, has fostered a surge in bilateral trade, reaching $83.6 billion in 2023-2024 from $59.5 billion in 2013-2014. However, this growth has brought forth concerns regarding the sharp increase in silver, platinum alloy, and dry dates imports from the UAE into India. The issue was raised by India during the second meeting of the Joint Committee (JC) under the CEPA in the UAE on October 14th.
India expressed its concerns about the potential circumvention of rules of origin norms and urged the UAE to verify compliance. The UAE, recognizing the validity of these concerns, has agreed to examine the situation. This signifies a proactive approach by both nations towards ensuring fair and transparent trade practices under the CEPA framework.
Beyond the immediate concerns regarding import surges, India and the UAE are jointly aiming to achieve a $100 million non-oil trade target well before 2030. This ambitious goal underlines the commitment of both countries to further strengthen their economic ties and unlock new avenues for mutually beneficial trade and investment opportunities. The UAE is currently India's third largest trading partner, and the ongoing dialogue between the two nations reflects their shared dedication to a robust and equitable bilateral economic relationship.
The UAE's willingness to investigate India's concerns demonstrates the commitment to address concerns related to trade practices under the CEPA. This proactive approach bodes well for future collaboration and ensures that the agreement benefits both countries equitably. The shared goal of $100 million in non-oil trade underscores the positive trajectory of India-UAE economic relations and promises further growth and prosperity for both nations.
Source: UAE Agrees To Examine India’s Concerns On Sharp Rise In Silver And Platinum Imports Under CEPA