India’s commerce minister, Piyush Goyal, has stated that the comprehensive free trade deal reached between India and the United Arab Emirates will assist two-way trade reaching $100 billion in the next five years, facilitating millions of employment in both nations.
The agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to enter into force in May and would allow India to export around 90% of its products to the UAE on the first day, according to the minister, who spoke to the media after the signing of the treaty on Friday.
Mr. Goyal and UAE Minister of Economy Abdulla bin Touq Al-Marri signed the agreement during a virtual summit between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan. The two countries also unveiled a strategy for expanding their overall cooperation.
The agreement will benefit Indian and UAE businesses in a number of ways, including improved market access and reduced pricing. The CEPA is expected to increase bilateral commerce from $60 billion to $100 billion over the following five years.
In September of last year, India and the United Arab Emirates formally launched negotiations for a trade agreement. The 881-page agreement was achieved in December after a record-breaking 88 days of negotiations. According to Mr. Goyal, the trade deal is wide and “balanced.”
The CEPA would create 10 lakh employment in labor-intensive industries like textiles, handloom, gems and jewelry, leather, and footwear, and will enhance exports to the UAE market significantly.
In the pharmaceutical industry, Mr. Goyal stated that the UAE has promised to grant market access and regulatory clearance to Indian-made medicinal items that have been authorized by the EU, the UK, Canada, or Australia within 90 days of the filing of applications.
While the UAE has agreed to abolish taxes on Indian jewelry, India has agreed to grant duty exemptions on gold imports of up to 200 tonnes.
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