India-UAE CEPA information hub goes live
The Ministry of Economy has launched a new webpage for the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, signed by the two countries' leadership in February 2022 and will come into effect as of 1 May 2022.The e-platform provides UAE companies and investors who wish to capitalize on the benefits provided by the Agreement with access to all information related to the historic agreement, which has ushered in a new era of economic and trade cooperation between the two friendly countries.
The portal provides detailed information on all 18 chapters of the CEPA and lists simple steps that companies in the UAE can adopt to forge or expand their business relationship with the Indian market. In addition, it provides comprehensive and clear details for each sector including tariff structures, rules of origin, differential treatment, customs procedures, digital trade, and SMEs, which will help entrepreneurs identify the rules and tariffs applicable to their businesses and product as well as the certificates that must be obtained to enter the Indian market under the new regulations.
H.E. Juma Al Kait, Assistant Undersecretary of International Trade Affairs said, “The webpage provides all the necessary resources and relevant information to private sector stakeholders and companies in the UAE who are interested in enhancing their businesses and investment in India. It also gives them an overview of the trade and investment opportunities and features of this historic agreement.”
The Ministry of Economy’s launch of this webpage is part of its plan to operationalize the UAE-India CEPA, with the aim of providing the private sector with the tools, knowledge, and information it needs to deepen trade relations with India, which is the world's fifth largest economy. These efforts will help increase the volume of UAE-India non-oil trade to USD 100 billion a year within next five years.
A team of experts have also been appointed to respond to private sector’s and investor inquiries about CEPA and clarify its clauses, as well as to inform companies of several trade remedies contained in the Agreement. These include a number of experts from the Abu Dhabi and Dubai Chambers and The Department of Economy and Tourism.
Prashant (PK) Gulati, the Chairman Emeritus of TiE Dubai, who has been working with business in both countries, said, “While the relationship between UAE and India is an age old one, pre dating the imposition of political boundaries, this relationship has seen exceptional engagement and depth of association over the last decade with personal attention and support of leadership from both sides. The culmination of this new depth of engagement is the CEPA signed on February 17 2022 in Delhi.”
Gulati believes that “this is a game changing initiative that will change the contours of our economic relationship, enhancing the level and quality of trade between the two countries which are already the top global business destination to each other. The opening up of specific sectors to each other like Indian pharmaceuticals and jewellery, access to markets beyond into Africa and a large market like India to UAE products, services and petrochemicals – is just the beginning and we will see hyper growth of trade and business between the two countries. Easing of restrictions, reduction of compliance overload and quick decision making mechanisms are essential for business success and form the cornerstone of this agreement.”
In the coming phase, the UAE Ministry of Economy will meet with state-owned enterprises, family business conglomerates and large multinational companies to help them understand the details of the tariff reduction and removal – which covers 80 percent of products. Workshops will also be conducted to ensure every startup and corporation knows what to do to unlock the enormous opportunities presented by the CEPA.
Gulati concluded, “Close association between leaders, ministers and officials has led to a really comprehensive document and it will positively impact and enhance business on both sides. With UAE already a popular destination for Indian professionals and investors, I believe this will open flood gates of interest and mutually beneficial investment.”