The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE is set to be a template for future trade agreements that both the nations are planning to sign with other countries. This report captures what is in store for multinationals in the India-UAE CEPA.
The negotiation and signing of the 880-page Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates (UAE) in mere 88 days is symbolic of the trust and deep historic ties between the two nations.
The urgency to further cement the strong bilateral relationship through this landmark trade agreement was clearly visible when it was signed in February during a virtual summit between India’s Prime Minister Narendra Modi and Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi.
While the CEPA will benefit businesses dealing in gems and jewellery, petroleum products and dates among others from the UAE end, it will help India’s pharma, technology and services sectors. India is expecting to generate one million jobs with the help of the agreement.
The fact that the digital economy has received special attention in the CEPA shows that negotiators have not only taken care of the current needs but have also kept in mind the future requirements emerging from shift towards automation and artificial intelligence, digital trade, fintech, edtech, green tech and sustainability.
Both the countries are also looking at increased competitiveness of their products, especially India, as the deal provides its businesses the much-needed market access to Africa, Central Asia and other Middle Eastern markets through the UAE.
Among the major gainers will be the labour-intensive Indian products exported to the UAE such as textiles, gems & jewellery, medicines, agricultural products, footwear, leather, sports goods, engineering goods, auto components and plastics. More importantly, the agreement also seeks to address UAE’s food security and India’s energy security issues.
Besides the benefits accruing from the India-UAE CEPA, the deal has also bolstered their efforts to negotiate and sign foreign trade agreements with several other countries on the lines of this agreement.
This report captures the key elements of the agreement and explains what it means for businesses when the deal comes in effect from May 1, 2022.
Read the report below and click here to download a copy.