Why is it in the news?
- The UAE-India Comprehensive Economic Partnership Agreement (CEPA) Council was launched at the India-United Arab Emirates (UAE) Business Summit.
- It aims to foster close partnerships and tangible cooperation across all levels of UAE and Indian business communities.
- Emphasizes collaboration in start-ups, women entrepreneurs, Micro, Small, and Medium-Sized Enterprises (MSMEs), and the services sectors.
About India-UAE CEPA (Comprehensive Economic Partnership Agreement)
- Came into force in 2022.
- The first full free trade Agreement signed by India with any country in the past decade.
- Encompasses Trade in Goods and services, Rules of Origin, customs cooperation, and Dispute Settlement, among other aspects.
- Bilateral trade increased by approximately 15% since the CEPA came into force.
Significance of CEPA
- Provides enhanced access for cross-border trade in services, particularly benefiting the pharmaceutical sector.
- Aims to raise bilateral merchandise trade to $100 billion in five years from about $43 billion in FY21.
- Special safeguard measures included to protect against a surge in imports from the UAE due to tariff concessions.
| India-UAE
· UAE serves as a gateway to West Asian countries and Africa for Indian exporters. · UAE is India’s third-largest trading partner (2022-23) after China and the US, and the second-largest export destination. · Both countries engage in maritime cooperation to maintain peace and security in the region through regular military exercises like Desert Eagle. |
