India-UAE Comprehensive Economic Partnership Agreement takes effect
On Sunday, CEPA, the landmark Comprehensive Economic Partnership Agreement, came into force between India and the United Arab Emirates. CEPA was signed by both countries in February this year and came into force on Monday. In a function held today in New Delhi, the Secretary of the Department of Commerce, B V R Subrahmanyam, flagged off the first consignment of goods comprising jewellery products from India to the UAE under the CEPA.
A zero customs duty agreement will now apply to the consignment, which is expected to reach Dubai by today. India’s jewellery and gem exports to the UAE make up a substantial portion of its total exports. The UAE will provide India with preferential market access on over 97 per cent of its tariff lines. These tariff lines account for 99 per cent of Indian exports to the UAE in value terms. The CEPA is expected to increase bilateral trade in goods to over $100 billion and trade in services to over $15 billion during the next five years.