India and United Arab Emirates (UAE) formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with an early harvest to be concluded by end December.
Context
India and United Arab Emirates (UAE) formally launched negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with an early harvest to be concluded by end December.
About
- It is a new strategic economic agreement between both nations.
- It is expected to increase bilateral trade in goods to $100 billion within five years of the agreement being signed and increase trade in services to $15 billion.
- Both sides aim to conclude negotiations by December 2021 and sign a formal agreement in March 2022.
- CEPA will create new jobs, raise living standards, and provide wider social and economic opportunities in both nations.
India-UAE’s trade relations
- The UAE is currently India’s third-largest trading partner with bilateral trade in FY20 valued at $59 billion.
- India was the UAE’s second-largest trading partner in 2019, with bilateral non-oil trade valued at $41 billion.
- The UAE is the eighth-largest investor in India, having invested $11 billion between April 2000 and March 2021.
- The UAE is also India’s second-largest export destination after the US, with exports valued at approximately $29 billion in FY20.
- Items of exports: petroleum products, gems and jewellery, minerals, food items such as cereals, sugar, fruits and vegetables, tea, textiles and chemicals.
- Items of imports: petroleum and petroleum products, precious metals, stones, gems and jewellery, minerals, chemicals and wood and wood products.
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CEPA with other countries
- CEPA between India and South Korea was signed in 2009.
- CEPA between India and Japan was signed in February 2011.
