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India Inks Historic Trade Deal With UAE; Bilateral Trade Boost To $100 Billion soon

Source : News18

India Inks Historic Trade Deal With UAE; Bilateral Trade Boost To $100 Billion soon
Indian Minister of Commerce and Industry Mr. Piyush Goyal signed the Historic trade pact with his UAE counterpart Thani Al Zeyoudi on Friday

India on Friday signed a historic trade pact – Comprehensive Economic Partnership Agreement (CEPA) – with the UAE during a bilateral meeting between the two countries. The deal is the fastest to be negotiated between any two nations in a record time span of 3 months. The Joint Vision Statement of the trade pact laid out contours of the future course of bilateral relations and also highlighted specific areas of focus in the field of defence, energy and climate, among others.

The vision statement talked about boosting bilateral trade to $100 billion in five years, supporting energy transition and working on a low-carbon future, establishing a Joint Hydrogen task force to bump up technology and establishing an IIT in the UAE.

The deal will also help reduce import duties on most of the Indian goods exported to the Emirates. Besides, this will provide Indian exporters with much wider access to the larger Arab and African markets.

The pact was signed by Union Minister of Commerce and Industry Piyush Goyal during a bilateral meeting with the UAE delegation led by Minister of Economy, Abdulla bin Touq Al Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi.

Meanwhile, PM Modi, talking about the trade deal during the virtual summit with Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed, said that this agreement “reflects the deep friendship, shared vision and trust between the two countries". “I am sure this will usher in a new era in our economic relations," the PM said, adding that “our business will grow from $60 billion to $100 billion in the next five years".

“Today, both countries are signing the Comprehensive Economic Partnership Agreement. We’ve finished deliberations in under three months," he further said.

Modi later tweeted that the trade partnership underwent huge changes in the past seven years. “Great pleasure to hold Virtual Summit with my friend HH @MohamedBinZayed Crown Prince of Abu Dhabi. India-UAE comprehensive strategic partnership has undergone huge transformation in the past 7 years. We issued a Joint Vision Statement that lays the future roadmap for our ties," he wrote.

Highlights of Trade Deal

The joint statement delineates cooperation in specific focus areas in the field of defence and security, economy, health, energy, skill and education.

Defence And Security

Agreed to enhance maritime cooperation contributing to the maintenance of peace and security in the region.

Reaffirmed joint commitment to fight against extremism and terrorism, including cross-border terrorism, in all forms, at both regional and international levels.

Economic Partnership

CEPA to result in an increase of bilateral trade from $60 billion to $100 billion in 5 years.

To expedite work on a dedicated investment zone for UAE companies and joint ventures with a focus on setting up a food corridor and establishment of a dedicated India Mart in Jebel Ali Free Zone.

To create investment opportunities for Indian investors in establishing specialised industrial advanced technology zones in Abu Dhabi, with a specific focus in areas of logistics and services, pharmaceuticals, medical devices, agriculture, agri-tech, steel and aluminium.

Energy Partnership

Promote collaboration opportunities to support India’s energy requirements, including new energies, and ensure the provision of affordable and secure energy supplies to India’s growing economy.

Mutual support in energy transition and focused work on a low-carbon future.

Climate Action And Renewables

Agreed to support each other’s clean energy missions and establish a joint Hydrogen Task Force to help scale up technologies, with a special focus on the production of Green Hydrogen.

Education Cooperation

Agreed to establish an Indian Institute of Technology in the UAE.

Emerging Technologies

Agreed to expand cooperation and collaborate on critical technologies and mutually promote e-businesses and e-payment solutions and promote start-ups from both countries.

Cultural Cooperation

Agreed to set up an India–UAE Cultural Council to facilitate and promote cross-cultural exchanges, cultural projects, exhibitions and dialogue between thought leaders of the two countries.

Skills Cooperation

Agreed to enhance cooperation in skill development so as to align with the market needs and address the changing needs for the future of work.

Food Security

Acknowledged the need to enhance the resilience and reliability of food supply chains.

Agreed to expand cooperation through enhanced bilateral food & agriculture trade and, promote and strengthen the infrastructure and dedicated logistic services connecting farms to ports to final destinations in the UAE.

Health Cooperation

Agreed to collaborate in research, production and development of reliable supply chains for vaccines and enhance investments by UAE entities in the rapidly growing health infrastructure in India as well as collaborate in providing health care in underprivileged countries.

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