NEWS : India-UAE Comprehensive Economic Partnership Agreement (CEPA) enters into force

WHAT IS CEPA

• Kind of free trade pact 
• Covers negotiation on the trade in services and investment, and other areas of economic partnership
• 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
• Looks into the regulatory aspect of trade and encompasses an agreement covering the regulatory issues.

INDIA-UAE CEPA

• The CEPA is likely to benefit about $26 billion worth of Indian products that are currently subjected to 5% import duty by the UAE, India’s third-biggest trading partner behind the US and China.
• It is expected that the CEPA will lead to an increase in bilateral trade from the current $60 bn to $100 bn in the next 5 years.
• Through the pact, Indian exporters will also get access to the much larger Arab and African markets

INDIA-UAE

• Trade:From USD 180 million per annum in the 1970s, India-UAE bilateral trade has steadily increased to USD 60 billion in FY 2019-20 making the UAE, India’s third-largest trading partner.
• Investments:The UAE is also the eighth largest investor in India with an estimated investment of USD 18 billion.