- Recently, India and the United Arab Emirates (UAE) formally launched negotiations on the India-UAE Comprehensive Economic Partnership Agreement (CEPA)
- Looking to build on the progress made by both countries under the Comprehensive Strategic Partnership signed in 2017, both countries expressed a desire to reach a mutually beneficial economic deal.
Important points:
- It is a kind of free trade pact which covers negotiation on the trade in services and investment, and other areas of economic partnership. It may even consider negotiation on areas such as trade facilitation and customs cooperation, competition, and Intellectual Property Rights.
- Partnership agreements or cooperation agreements are more comprehensive than Free Trade Agreements.
- CEPA also looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.
- India has signed CEPAs with South Korea and Japan.
Significance
It is expected to increase bilateral trade in goods to USD 100 billion within five years of the signed agreement and increase trade in services to USD 15 billion, leading to wider social and economic opportunities in both nations.
SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT