Purposeful business and investment engagement means no limit on achievements, says Al Zeyoudi
India and the United Arab Emirates (UAE) have signed the historic Comprehensive Economic Partnership Agreement (CEPA) aimed at boosting the merchandise trade between the two countries to US$100 billion over next five years, aspiring to establish a new era of progress and prosperity for the people of both nations.
The CEPA and other agreements were signed during a Virtual Summit held by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Chairman of the Executive Council, and Prime Minister Narendra Modi.
The CEPA is India’s first bilateral trade agreement in the MENA region to transform bilateral economic and investment ties, open up emerging trade routes between Africa and Asia, promote global trade liberalization and propel economic growth in a post-COVID world.
“The UAE, under the leadership of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, continues to consolidate its global position as a gateway for trade and investment,” said Zayed Al Nahyan.
“India is one of our most important strategic partners, and this deal brings us closer than ever before. The agreement we have reached today with Prime Minister Modi not only deepens our economic and trading relationship with a close partner but unlocks a new phase of global cooperation for us,” he said.
His Highness added, “The historic economic agreement demonstrates the commitment of our leaders to the bold Projects of the 50, launched in our pursuit of the next 50 years of progress and prosperity. Future generations will benefit from this forward-looking vision aimed at stimulating growth and doubling our trade with the world and to strengthen the UAE’s knowledge and innovation-driven economy.
“This deal promises to provide significant benefits to UAE and Indian businesses, including reduced tariffs and enhanced market access, while also breathing new life into trading corridors from Africa to Asia and laying the foundations for growth and prosperity that will benefit the entire region.”
Prime Minister Narendra Modi said, “I am happy at the signing of the Comprehensive Economic Partnership Agreement between our two nations today. It is noteworthy that such an important agreement has been concluded in a record time of less than 3 months. Such agreements generally take years for conclusion.
“The Agreement demonstrates the deep friendship, shared vision and the trust between the two countries. I am confident that this will usher in a new era in our bilateral economic relations and the bilateral trade volume will increase from US$60 Billion to US$100 billion in the coming 5 years.”
The UAE Minister of Economy Touq Al Marri said the CEPA is a milestone in the relationship between India and the UAE and has been built on decades of enterprise and aspires to establish a new era of progress and prosperity for the people of both nations.
Thani Al Zeyoudi, Minister of State for Foreign Trade, added, “If our investors, entrepreneurs and businesses engage with each other with a sense of purpose, there is no limit to what can be achieved.”
Several other agreements were also signed on 18 Feb 2022 between the two nations, including an MoU between APEDA and DP World and Al Dahra on the UAE side regarding “Food Security Corridor Initiative” and an MoU between GIFT city (IFSCA) and Abu Dhabi Global Market (ADGM).
Commerce and Industry Minister Piyush Goyal observed that both nations believed in rules based fair trade, in engaging with each other in a spirit of reciprocity and were determined that people and businesses of both countries must mutually benefit from the deepening engagement.
India and the UAE are natural partners with several complementarities and hardly any elements of competitions, he underlined.
The Agreement was not an interim arrangement but a complete and comprehensive economic partnership finalized in the shortest possible time in history, and covered the widest possible array of subjects from free trade to digital economy to government procurement and several other strategic areas of mutual interest.
He complemented the teams on both sides for their commitment and their dedication and for successfully concluding one of the most balanced, fair and equitable agreements in just 88 days, working in a spirit of brotherhood and friendship understanding each other’s sensitivities.
Emphasizing that CEPA would generate 10 lakh jobs across multiple labour-intensive sectors, the Minister said that major sectors like gems and jewellery, textiles, leather, footwear, furniture, agriculture and food products, plastics, engineering goods, pharmaceuticals, medical devices, sports goods etc. will benefit from this deal and create large scale, employment for our young boys & girls.
There were many firsts in the CEPA agreement, he noted, adding that the UAE has agreed to automatic registration and market authorization for Indian medicines in case of their regulatory approval in developed countries such as the USA, the UK, EU and Japan.
The agreement also has a permanent safeguard mechanism which can be resorted to in a situation of sudden surge in imports along with strict rules of origin, which will prevent products from other countries through the CEPA route.
Bilateral relations between India and the UAE have strengthened in all areas of mutual interest in the past few years and both sides had embarked upon a comprehensive strategic partnership in 2017.
Trade, investment and energy relations between India and the UAE have remained robust.
Both sides are also strengthening their cooperation in new areas of renewable energy like green hydrogen, climate action, start-ups, skilling, FinTech and HealthTech.
The UAE is India’s third largest trade partner and bilateral trade is expected to surpass US$60 billion mark in the current financial year.
India ranks as the UAE’s number one trading partner for non-oil exports, accounting for nearly 14% of the Emirates’ total non-oil exports globally. fiinews.com
