INDIA-UAE VIRTUAL SUMMIT

• Recently, the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates (UAE) got finalised.
• India-UAE CEPA was signed on 18th February 2022, during the India-UAE Virtual Summit
• The Agreement is expected to enter into force on 1st May 2022
• CEPA provides for an institutional mechanism to encourage and improve trade between the two countries.

Salient features of India-UAE CEPA

The Agreement is a comprehensive agreement, which will cover:

1. Trade-in Goods.
2. Rules of Origin.
3. Trade-in Services.
4. Technical Barriers to Trade (TBT).
5. Sanitary and Phytosanitary (SPS) measures.
6. Dispute Settlement.
7. Movement of Natural Persons.
9. Customs Procedures.
10. Pharmaceutical products.
11. Government Procurement.

Benefits of India-UAE CEPA

• India will benefit from preferential market access provided by the UAE, especially for all labour-intensive sectors.
• Such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, medical devices, and Automobiles.
• Both India and UAE have offered each other market access to the broad service sectors.
• Such as ‘business services’, ‘communication services’, ‘construction and related engineering services, ‘distribution services’, ‘educational services’, ‘environmental services’, ‘financial services, ‘health-related and social services, ‘tourism and travel-related services, ‘recreational cultural and sporting services’ and ‘transport services’.
• Trade-in Pharmaceuticals: Both sides have also agreed to a separate Annex on Pharmaceuticals to facilitate access to Indian pharmaceuticals products, especially automatic registration and marketing authorisation in 90 days for products meeting specified criteria.

CEPA

• It is a kind of free trade pact that covers negotiation on the trade in services and investment, and other areas of economic partnership.
• It may even consider negotiation in areas such as trade facilitation and customs cooperation, competition, and IPR.
• 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.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT