India-UAE Comprehensive Economic Partnership Agreement (CEPA) Comes Into Force
New Delhi, May 1 (TNA) The historic India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was signed between the two nations on February 18, 2022, officially entered into force on Sunday. Secretary, Department of Commerce, BVR Subrahmanyam flagged off the first consignment of goods comprising of Jewellery products from India to UAE under the India-UAE CEPA at a function in New Customs House in New Delhi today.
In a symbolic gesture operationalizing the landmark Agreement, the Commerce Secretary handed over Certificates of Origin to three exporters from the Gems & Jewellery sector. The aforementioned consignment which will now attract zero customs duty under this Agreement is expected to reach Dubai later today.
Gems & Jewellery sector contributes a substantial portion of India’s exports to the UAE and is a sector that is expected to benefit significantly from the tariff concessions obtained for Indian products under the India-UAE CEPA.
Overall, India will benefit from preferential market access provided by the UAE on over 97 % of its tariff lines which account for 99% of Indian exports to the UAE in value terms particularly from labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, pharmaceuticals, medical devices, and Automobiles.
As regards trade in services, Indian service providers will have enhanced access to around 111 sub-sectors from the 11 broad service sectors. CEPA is expected to increase the total value of bilateral trade in goods to over US$100 billion and trade in services to over US$ 15 billion within five years.