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India, UAE formally launch CEPA negotiations

  • Posted By
    10Pointer
  • Categories
    World Affairs
  • Published
    24th Sep, 2021

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.

CEPA with other countries

  • CEPA between India and South Korea was signed in 2009.
  • CEPA between India and Japan was signed in February 2011.

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